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The statement of work (SOW) is a document that outlines the terms and objectives of a project or service contract, including the scope of work, deliverables, timelines, and expectations. It is important for defining the work to be done between the customer and the vendor. The SOW is crucial in project management and falls under the Project Management Body of Knowledge (PMBOK) or Project Management Institute (PMI). It essentially clarifies what the customer wants to achieve and what needs to be done to meet those objectives.