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The video tutorial discusses the importance of a Statement of Work (SOW) in project management, focusing on the Project Management Body of Knowledge (PMBOK) or Project Management Institute (PMI). It explains that the SOW is a document that outlines the project's terms, objectives, scope of work, deliverables, timelines, and expectations. It serves as a tool to define the tasks and responsibilities between the customer and the vendor. The SOW essentially acts as a detailed document that specifies what needs to be done in a project.