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In this video tutorial, Drew Bowers Auger discusses the importance of using contracts in consulting engagements, highlighting the need for a consulting agreement to prevent billing disputes. Key points to include in the contract are: the client hiring you as an independent contractor, payment amount, payment frequency, acceptable payment methods, and signatures from both parties. He provides sample consulting agreement templates, noting that contracts often favor the party that created them. Ideally, consultants should have clients sign their contract. If compelled to sign a client’s contract, it's crucial to review it thoroughly to understand billing rates, frequency, and project completion terms, and to discuss any disagreements or uncertainties with the client.