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In this video tutorial, the importance of having a service agreement before starting work on a new contract is emphasized. When new contractors receive vendor agreements and demands from clients, such as insurance information and tax forms, they often rush to provide the necessary details in their eagerness to begin work. However, it's crucial not to overlook self-protection during this process. The video warns that, while fulfilling client requests, new contractors should also ensure they establish a service agreement to safeguard their interests before proceeding with any work. This helps in preventing potential misunderstandings and protects against liability.