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In California, a written contract is required for all home improvement projects over $500. A contract is important to avoid misunderstandings about the job, 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 in writing, legible, and easy to understand, with any verbal promises also written into it. Remember to include detail on materials, size, color, specific materials, and work details.