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In California, a written contract is required for home improvement projects costing over $500. It is essential for preventing misunderstandings and should include details about the work scope, materials, project timeline, costs, and payment schedule. The contract must specify who is responsible for obtaining necessary permits and include information on cancellation rights, mechanics liens, and permissible delays. All changes must also be documented in writing, which should be clear and legible. Key aspects to include are detailed descriptions of materials (size, color, quantity) and specific work instructions. Remember to ensure all verbal promises are documented in the contract.