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