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Construction contracts are agreements between parties, often involving the exchange of money for services like building a house. Verbal agreements are legally binding, but difficult to prove in case of disputes. It is crucial to have everything in writing to avoid costly mistakes. The speaker learned this lesson the hard way, losing about $3,000 due to lack of written contracts within the first six months of their business. Stick to the rule of getting everything in writing to protect yourself from potential losses.
