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When hiring someone for home repair work, a contract is essential for protection against dishonest contractors, especially for projects over $500, as many state laws require written contracts. The contract should include the project start and completion dates, contractor responsibilities for permits, a payment schedule, a detailed list of materials (including costs, color, type, and brand), warranties, handling of change orders, responsibilities for clean-up and property damage, and the right to cancel within three business days. There are two types of contracts: fixed price, which itemizes costs and protects against overruns, and time and materials, which charges based on actual time and materials used.