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Construction contracts are agreements between two parties involving an exchange, typically money for services like building a house. Verbal agreements can be legally binding, but it's hard to prove in case of incidents. Getting everything in writing is crucial to avoid costly mistakes - the speaker learned this lesson the hard way, losing about $3,000 due to not having a contract in place within their first six months of business. Stick to the rule of getting it all in writing, no matter what.
