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When hiring for home repairs, a contract is essential to protect against dishonest contractors, even for lower-cost jobs. Many states mandate written contracts for projects over $500. A contract should detail the project timeline, contractor's responsibility for permits, payment schedule, materials list with costs, warranties, handling of change orders, cleanup responsibilities, and cancellation rights within three business days. There are two main contract types: fixed price, which itemizes all costs and prevents budget overruns, and time and materials, which can vary based on actual labor and material usage.
