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When hiring someone for home repair work, a contract is essential to protect against dishonest contractors, even if the cost seems low. Many state laws require written contracts for projects over $500. The contract should include start and completion dates, permits, payment schedule, materials list, warranties, change orders, clean-up, cancelation rights within 3 days. Two types of contracts are fixed price (itemizes costs to prevent exceeding original estimate) and time & materials (based on labor and material costs).