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Construction contracts are agreements between two parties, usually involving an exchange of money for services such as building a house. A verbal agreement can also be legally binding, but it is crucial to have everything in writing to avoid difficulties in case of incidents. The speaker learned this lesson the hard way, losing about $3,000 due to not having a contract in place within the first six months of their business. It is essential to always get everything in writing to protect yourself and avoid financial losses.
