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In this video, the concept of a Statement of Work (SOW) is discussed. A SOW is a detailed and structured document that outlines the requirements of a project, including work to be done, products to be created, deadlines, and processes. It is often a contractual document that accompanies the main contract and is customized for each specific piece of work. Other components that can be included in a SOW are project background, specifications, acceptance criteria, quality standards, and financial measures.