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When hiring a contractor for home repair, a written contract is essential for protection against dishonest practices, especially for projects exceeding $500, as required by many state laws. The contract should specify the project start and completion dates, contractor responsibilities for obtaining permits, payment schedules, a detailed list of materials with costs, color/type/brand, warranties for both materials and workmanship, procedures for handling change orders, cleanup responsibilities, and your right to cancel within three business days. There are two contract types: a fixed price contract, which itemizes costs and protects against budget overruns, and a time and materials contract, which may vary in total cost.