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Christa Hughes, the founder of a nerds WorldCom in downtown Toronto, discusses the importance of a Statement of Work (SOW) for freelancers in web development and graphic design. Previously, contracts were not detailed enough, but incorporating a SOW is essential for clarity and legal protection. A SOW outlines project details, scope of work, deadline, and deliverables, enhancing client communication and preventing misunderstandings. Hughes emphasizes the significance of incorporating a SOW with a contract to ensure smooth project execution.