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Construction contracts are agreements between two parties, typically involving an exchange of money for services like building a house. The simplest form of a contract can be a verbal agreement, which is legally binding, but difficult to prove if disputes arise. It is crucial to get everything in writing to avoid issues. The presenter shares a personal experience from the first six months of business, where not having a written contract resulted in a loss of about $3,000. This costly lesson emphasizes the importance of written agreements in construction to protect both parties involved.
