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Construction contracts are agreements between two parties, typically involving the exchange of money for services, such as building a house. While the simplest form of a contract can be a verbal agreement, these are legally binding but difficult to prove in case of disputes. Therefore, it's essential to document all agreements in writing to avoid potential issues. The speaker shares a personal experience where failing to have a written contract resulted in a loss of about three thousand dollars within the first six months of their business, highlighting the importance of thorough contract documentation.
