In answer to your question 1: The start of both Contract Datas use the words 'one' or 'two', so I would and do use the word rather than the number. I have no idea where the "suggestion from peers that the use of '1' would be a universal reference, however if referring to something specific ... this would give rise to the use of 'one'" comes from.
For your question 2: you are right to use the word 'works' in italics, not 'Works' on its own.
For your question 2: you are right to use the word 'works' in italics, not 'Works' on its own.