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In this video, Thomas Suit discusses the Statement of Work (SOW), a key document in project management according to the PMBOK. The SOW outlines the terms and objectives of a project or service contract, detailing the project scope, deliverables, timelines, and expectations. It serves as a formal agreement between the customer and vendor, clarifying what the customer requires and what the vendor will deliver. The SOW is essential for ensuring both parties understand their responsibilities and the project's requirements.