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In California, a written contract is mandatory for home improvement projects exceeding $500 to prevent misunderstandings. The contract must detail the work scope, materials, project timeline, total cost, and payment schedule. It should clarify who is responsible for permits, cancellation rights, mechanics liens, and allowable delays. All contract modifications must also be documented in writing, ensuring clarity and legibility. Essential points to remember include getting all agreements in writing, detailing materials (including size, color, and any specific requirements), and specifying work details comprehensively.