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In California, a written contract is mandatory for home improvement projects exceeding $500. A contract serves to prevent misunderstandings by clearly outlining the scope of work, materials to be used, project timeline, total cost, and payment schedule. It must specify who is responsible for obtaining permits and include details regarding your cancellation rights, mechanics liens, and any allowable delays. All contract changes should also be documented in writing and must be legible and understandable. Ensure that any verbal promises are included in the contract. Key points include specifying materials in detail, including size, color, quantities, and any essential work information.