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In this video tutorial, Thomas Suit explains the concept of Statement of Work (SOW) in project management, focusing on the PMBOK or PMI framework. The SOW is a document outlining project objectives, scope of work, deliverables, timelines, and expectations for a project or service contract. It serves as a formal agreement between the customer and vendor, defining what needs to be done. Essentially, the SOW acts as a guide for both parties in understanding their responsibilities and objectives.