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In this video tutorial, a discussion occurs between a project manager and a colleague regarding the importance of a statement of work (SOW) in a client agreement. The project manager emphasizes that the SOW outlines the project's budget, deliverables, and the scope, distinguishing what is included and excluded. Despite a handshake agreement, the colleague argues that time constraints make detailed documentation challenging. The video stresses that a detailed SOW can protect parties involved and should include specifics such as deliverables, due dates, and costs. The project manager suggests creating a detailed SOW to clarify expectations with the client.