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In this tutorial, Thomas explains the concept of a Statement of Work (SOW) in project management. The SOW outlines the terms and objectives of a project or service contract, including the scope of work, deliverables, timelines, and other expectations. It serves as a document that defines the tasks to be completed between the customer and the vendor, clarifying what the customer wants to achieve. The SOW is an important tool in project management to ensure everyone is on the same page regarding project requirements and deliverables.