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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 contract can be a verbal agreement, which is legally binding, but difficult to prove in case of disputes. Therefore, it's crucial to get everything in writing to avoid misunderstandings. A personal experience highlighted the importance of this, where a lack of written contracts resulted in a loss of about three thousand dollars, a significant setback for the business. The lesson learned reinforces the necessity of documenting agreements to protect oneself in business transactions.