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Construction contracts are agreements between two parties, typically involving an exchange of money for services, like building a house. Basic contracts can be verbal, which are legally binding, but difficult to prove in case of disputes. Therefore, it's crucial to have everything documented in writing. A key lesson learned in the first six months of business involved a costly experience where a lack of a written contract resulted in a $3,000 loss, which took several months to recover from. This emphasizes the importance of always getting contracts in writing to avoid potential financial issues.