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Construction contracts are agreements between two parties, primarily involving the exchange of money for services, such as building a house. The simplest form of contract can be a verbal agreement, which is legally binding but difficult to prove in case of a dispute. Therefore, it’s essential to get all agreements in writing to avoid complications. The speaker learned this lesson the hard way within the first six months of their business, resulting in a loss of about three thousand dollars. This experience highlighted the importance of formal contracts, as it caused significant financial strain, suggesting that adequate documentation is crucial in the construction industry.
