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In this video tutorial, Drew Bowers Auger discusses the importance of using contracts in consulting. He emphasizes the necessity of signing a consulting agreement to prevent disputes over billing and engagement details. Key aspects to include are the acknowledgment of the consultant as an independent contractor, payment amounts, frequency, acceptable payment methods, and signatures from both parties. He advises using templates for consulting agreements and highlights that contracts are often biased towards the party that drafted them. It’s preferable for clients to sign the consultant's contract. If confronted with the client's contract, review it thoroughly to ensure clarity on rates, billing frequency, and project completion; any disagreements should be addressed with the client.