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In California, a written contract is required for home improvement projects over $500 to prevent misunderstandings. This contract must detail the work scope, materials used, project timeline, total cost, payment schedule, and responsibilities for obtaining necessary permits. It should also cover your cancellation rights, mechanics liens, and allowable delays. All contract modifications must be in writing, clear, and understandable. Any verbal promises should be documented in the contract. Key points include the need for detailed descriptions of materials, including size and color, and specific work details relevant to the job.