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In California, a written contract is required for home improvement projects exceeding $500 to prevent misunderstandings. The contract should detail the scope of work, materials to be used, project timeline, total cost, and payment terms. It must also state who is responsible for obtaining necessary permits and include rights related to cancellation, mechanics liens, and allowable delays. All changes to the contract must be documented in writing and the contract should be clear and legible. It's essential to ensure that any verbal promises are included in the written contract. Key points to remember include detailing materials (size, color, and quantity) and specific work requirements.