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When hiring a contractor for home repair work, having a contract is important to protect you from dishonest practices. State laws often require written contracts for projects over a certain amount. The contract should outline project dates, permit responsibilities, payment schedule, material details, warranties, change orders, clean-up, property damage, and cancellation rights. There are two types of contracts: fixed price and time & materials. Fixed price contracts itemize costs to prevent exceeding estimates and budget limits.