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In California, a written contract is required for home improvement projects over $500. This helps avoid misunderstandings by including a description of the work, materials used, project timeline, cost, payment schedule, permit responsibility, cancellation rights, mechanics liens, and allowable delays. The contract must be clear, legible, and include any changes made. It is important to have everything in writing, including promised verbal agreements, to ensure clarity and protect both parties. Remember to include detailed material descriptions, sizes, colors, specific materials, and work details in the contract.