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The video tutorial by Thomas Suit explains the concept of a Statement of Work (SoW), which is crucial in project management according to PMBOK or PMI standards. A Statement of Work is a document that outlines the terms and objectives of a project or service contract. It includes the scope of work, deliverables, timelines, and other expectations agreed upon by the customer and the vendor. Essentially, it serves as a formal agreement that defines the specific tasks and requirements necessary to meet the project objectives, clarifying what the customer wants from the vendor.