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Scotty from Ogden Built discusses the importance of having contracts in the construction industry. He emphasizes that contractors need clear agreements to avoid misunderstandings about costs, especially concerning potential extra charges at the end of a project. Initially hesitant about writing contracts for fear of limiting his earnings, Scotty ultimately found that drafting detailed agreements helped both him and his clients. By including comprehensive information about project steps and pricing, he ensured client satisfaction while securing fair compensation for his work. The tutorial highlights key elements to consider when creating construction contracts.