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In this video tutorial, Drew Bowers Auger discusses the importance of using consulting contracts to prevent disputes related to billing and engagement. He emphasizes the need for a consulting agreement that outlines: the client hiring the consultant as an independent contractor, payment amount, payment frequency, acceptable payment methods, and signatures from both parties. He provides sample consulting agreement templates and advises that contracts are often biased towards the party that drafted them. It's preferable for consultants to have clients sign their contracts. If required to sign a client's contract, consultants should carefully read it to ensure clarity on rates, billing frequency, and project completion, discussing any disagreements or misunderstandings with the client.