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Construction contracts are agreements between two parties where one party exchanges something for something else, often money for services. Even verbal agreements can be legally binding, but it can be difficult to prove in case of an incident. It is important to get everything in writing to avoid costly mistakes. The speaker learned this the hard way in their first six months of business, losing about three thousand dollars due to a lack of written contracts. Stick to the rule of getting everything in writing to avoid similar costly mistakes.