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Construction contracts are agreements between two parties, typically involving an exchange of money for services, such as building a house. The simplest form can be a verbal agreement, which is legally binding, but difficult to prove in case of disputes. Therefore, it is crucial to get everything in writing to avoid complications. The speaker shares a personal experience, emphasizing the importance of written contracts, highlighting a costly mistake that resulted in a loss of approximately three thousand dollars within the first six months of business. This serves as a lesson on the necessity of clear and documented agreements in construction work.
