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In California, a written contract is required for all home improvement projects over $500. A contract should include a description of the work to be done, materials to be used, project timeline, cost, payment schedule, permit responsibilities, cancellation rights, mechanics liens, and allowable delays. Any changes to the contract must be in writing. Ensure everything promised verbally is written into the contract. Describe materials in detail, including size, color, specific important materials, and work details. Make sure the contract is legible and easy to understand.