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Construction contracts are agreements between two parties, typically exchanging money for services like building. The simplest form can be a verbal agreement, which is legally binding, but difficult to prove in case of disputes. Therefore, it's crucial to get everything in writing to avoid issues. The speaker shares a personal experience from their first six months in business, where failing to have a written contract resulted in a $3,000 loss, significantly impacting their finances. This underscores the importance of written agreements in the construction industry to prevent misunderstandings and financial setbacks.
