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Construction contracts are agreements between two parties, typically involving an exchange of money for services such as building a house. The simplest contract can be a verbal agreement, which is legally binding, but proving such agreements in case of disputes can be challenging. To avoid issues, it is crucial to get everything in writing. The speaker learned this lesson the hard way within the first six months of their business, resulting in a loss of about $3,000, an amount that significantly impacted their finances and took months to recover. This experience underscores the importance of written contracts to prevent misunderstandings and potential financial losses.
