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In this video, Drew Bowers discusses essential contracts for consulting, emphasizing the importance of a consulting agreement to prevent disputes regarding billing and engagement. Key elements of a consulting contract include defining the client's engagement of your business as an independent contractor, specifying payment amount, frequency, acceptable methods, and obtaining signatures from both parties. Bowers suggests using client-friendly templates, highlighting that contracts often favor the party that drafts them. He advises consultants to encourage clients to sign their own contracts and, if required to sign the client's contract, to carefully review it, ensuring clear understanding of terms such as rates, billing frequency, and project completion. Any disagreements should be openly discussed with the client.