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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 can be a verbal agreement, which is legally binding but difficult to prove in case of disputes. Therefore, it's essential to get all agreements in writing to avoid complications. The speaker shares a personal experience from the first six months of their business where a lack of a written contract led to a loss of about three thousand dollars, emphasizing the importance of written contracts to prevent financial losses and misunderstandings.
