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In this video tutorial, the importance of service agreements is emphasized, especially for newbies in the contracting business. It is crucial to not operate without one as it protects both parties involved. When landing a contract, the hiring company will typically send paperwork such as vendor agreements, demands, and policies that require insurance information, ein number, and w9 form. It is easy to overlook protecting oneself in the excitement of starting work, but it is essential to provide a service agreement to ensure mutual protection.