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Construction contracts are agreements between two parties, typically involving the exchange of money for services, like building a house. The simplest form of contract can be a verbal agreement, which is legally binding; however, proving such agreements can be challenging in case of disputes. Therefore, a crucial rule is to always get everything in writing. The speaker shares a personal experience from their first six months in business, where not having a written contract cost them around three thousand dollars, emphasizing the importance of clear documentation to avoid financial setbacks.
