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A written contract is required in California for all home improvement projects over $500 to avoid misunderstandings. The contract should include a description of the work, materials used, project timeline, cost, payment schedule, permit responsibilities, cancellation rights, mechanics liens, and allowable delays. It must be in writing and easy to understand, with any changes documented. It is important to get all promises in writing, especially regarding materials and work details. Remember to specify materials used, including size and color, and any specific details crucial to the job.