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In California, a written contract is required for all home improvement projects over $500 to avoid misunderstandings. The contract should include a description of the work, materials, project timeline, costs, payment schedule, permits, cancellation rights, mechanics liens, and allowable delays. Any changes to the contract must also be in writing. It is important to get promises in writing and include details about materials, sizes, colors, specific materials, and work details. Make sure the contract is legible and easy to understand.