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Construction contracts are agreements between two parties, typically involving the exchange of money for services, such as building a house. The simplest form can be a verbal agreement, which is legally binding, but proving the existence of such an agreement can be challenging in disputes. Therefore, it is crucial to get everything in writing to avoid potential issues. The speaker shares a personal experience from the first six months of their business, where a lack of a written contract resulted in a loss of approximately three thousand dollars, a significant setback that took them several months to recover from. This emphasizes the importance of formal contracts in construction work.
