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In this video, Professor K explains how to develop a Statement of Work, an essential project management tool. The Statement of Work outlines project work requirements, including timelines, services, activities, deliverables, and budget information. It ensures all parties know what is included and what is not in the project. This document is the final agreement between you and the client before work begins, outlining the work to be performed and responsibilities to the customer. Key parts of the Statement of Work include scope, schedule, and deliverables.