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Construction contracts are agreements between two parties, typically involving the exchange of money for services, such as building a house. The simplest form of a contract can be a verbal agreement, which is legally binding; however, proving the existence of such an agreement later can be difficult. Therefore, it is crucial to get everything in writing to avoid complications. The speaker shares a personal experience where failing to secure a written contract resulted in a loss of about three thousand dollars in the first six months of their business. This highlights the importance of formal contracts in safeguarding against potential financial losses.
