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A professional services agreement is established between an individual or company and a contractor providing services. The video discusses the definition of professional services, which can include various industries such as legal, electrical, carpentry, financial, and architectural services. Notably, consulting is generally not classified as a professional service. Those delivering professional services are typically required to hold specialized licenses or certificates relevant to their trade. When hiring a professional contractor or client, creating a solid contract is essential. A well-defined agreement clarifies responsibilities, addresses potential questions, and minimizes misunderstandings as the business relationship develops. The video also offers a free template at its conclusion.
