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The video explains the creation of a professional services agreement between an individual or company and a contractor providing services. It defines professional services, which span various industries such as law, electrical work, carpentry, finance, and architecture, noting that consulting is generally not classified as a professional service. Providers typically possess specialized licenses or certificates mandated by state regulations. The video emphasizes the importance of crafting a detailed contract when hiring a professional contractor or engaging a client. A solid agreement clarifies responsibilities, addresses questions, and helps prevent misunderstandings throughout the business relationship. Viewers are also informed about obtaining a free template by the end of the video.
