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In this video tutorial, Thomas Suit explains the concept of a Statement of Work (SOW) in project management. The SOW is a document that outlines the terms, objectives, scope of work, deliverables, timelines, and expectations of a project or service contract. It serves as a guide for both the customer and the vendor, defining what needs to be done and how. Essentially, the SOW is a crucial document that establishes the parameters of a project and ensures clarity between parties.