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When hiring someone for home repair, a contract is essential to protect against dishonest contractors, especially for projects over $500, as many state laws require it. The contract should outline the project start and completion dates, the contractor's responsibility for obtaining work permits, the payment schedule, and a detailed list of materials, including costs, color, type, and brand. It should also address warranties, change orders, cleanup responsibilities, damage liability, and the right to cancel within three business days. There are two contract types: fixed price, which itemizes all costs and prevents budget overruns, and time and materials, which may vary based on actual expenses.