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In this video tutorial by Drew Bowers Auger on consulting agreements, the importance of having a consulting contract is emphasized to avoid disputes over billing and engagements. Key points to cover in the contract include: the client hiring you as an independent contractor, payment amount, payment frequency, acceptable payment methods, and the need for signatures from both parties. Sample templates are provided, noting that contracts often favor the party who drafts them. It's recommended that consultants have their clients sign their contract. If a consultant must sign a client’s contract, they should read it carefully to ensure clarity on payment rates, billing frequency, and project completion, and discuss any disagreements or misunderstandings.