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In this video tutorial, the speaker discusses the challenges of pricing contracts, not only in the software industry but in all project delivery industries. They explain the use of fixed price contracts and time material contracts, highlighting the pros and cons of each. The speaker, who is the managing director of FlyingDonkey, reveals that they use a combination of both methodologies and will discuss the reasons further in the video. The video will cover the pros and cons of fixed price contracts, time material contracts, the use of credits, and the benefits of becoming a partner. The speaker emphasizes the unpredictable nature of estimating code writing time in fixed price contracts.