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If you need the job now, probably best to start and just see what happens with the other one. No sense in waiting and then being out of both. Not sure why a contract hasn’t been made yet, but be sure to read that over when you get one.
No matter what, you should offer you a contract, read between the fine lines, if you have quetions, ask them to make sure what they offer you is what you deserve. If all OK, then sign and ask for a copy of the signed contract. Better be safe than sorry.
Mentor
In this job market, take what you can get. If you get job 2 you can leave. Does it suck doing that to someone, yes, but sometimes you have to look out for yourself. If job 2 doesn't work out than at least you weren't waiting around and it's too late for job 1 with nothing in sight for another job.
I personally had a job offer which I accepted. I wasn't sure if job 2 was going to hire me. Turns out they did and I quit job 1 on the day I was supposed to start. I love where I work now and don't regret it.