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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 contracts can be verbal; however, while these agreements are legally binding, proving them can be challenging. Thus, it is essential to get everything in writing to avoid disputes. The speaker shares a personal experience from their first six months in business, where the absence of a written contract resulted in a loss of approximately three thousand dollars. This financial setback taught them the critical importance of formalizing agreements through written contracts to prevent significant losses.
