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Construction contracts represent an agreement between two parties, typically involving an exchange of money for services like building. While verbal agreements are legally binding, they create challenges in proving the terms if disputes arise. Thus, it's crucial to have all agreements documented in writing. The speaker shares a personal lesson learned within the first six months of their business, emphasizing that neglecting to formalize contracts cost them approximately $3,000—a significant financial setback that took months to recover from. Hence, the key takeaway is the importance of always getting everything in writing to avoid potential losses.
