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When hiring someone for home repairs, a written contract is essential for protection against dishonest contractors. Many states require contracts for projects over $500. A good contract should outline the project start and completion dates, the contractor's responsibility for obtaining permits, a payment schedule, a detailed list of materials with costs and warranties, procedures for change orders, handling cleanups, and damage, as well as the right to cancel within three business days. There are two main types of contracts: fixed price, which itemizes costs to prevent budget overruns, and time and materials, which is based on actual expenditures.
