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Construction contracts are agreements between two parties, typically involving an 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 but difficult to prove in case of disputes. Therefore, it’s essential to document all agreements in writing. The speaker shares a personal lesson from their first six months in business, where a lack of written contracts resulted in a $3,000 loss. This experience underscores the importance of having everything in writing to avoid potential financial setbacks.
