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The term software contractor can be confusing, but in this video tutorial, we aim to clarify what it means to be a contractor and what to expect. There are different types of software developer contracts, including contract employee, freelance, and project-based contracts. As a contract employee, you work exclusively with one client, embedded in their development team. Freelance contractors work on project-based tasks independently. It is essential to choose the contract type that suits the work you want to do.