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In this video tutorial, Drew Bowers Auger discusses the essential contracts for consulting, emphasizing the importance of signing a consulting agreement to avoid billing disputes. Key elements include defining the client as an independent contractor, payment amount and frequency, acceptable payment methods, and signatures from both parties. He provides sample consulting agreement templates, advising that contracts are often biased towards the party that created them. It is preferable for consultants to have clients sign their contracts. If required to sign a client’s contract, it's crucial to read it thoroughly to ensure clarity on rate, billing frequency, and project completion, discussing any disagreements or uncertainties with the client.