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Construction contracts are agreements between two parties where one party exchanges something for something else, usually money for a service like building a house. The most basic contract can be a verbal agreement, which is legally binding, but difficult to prove in case of disputes. It is crucial to get everything in writing to avoid costly mistakes. The speaker learned a hard lesson in their first six months of business when a lack of written contracts cost them $3000. Stick to the rule of getting everything in writing to prevent similar losses.
