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When hiring someone for home repair work, a contract is essential to protect against dishonest contractors. Many state laws require written contracts for projects over $500. A contract should outline the project start and completion dates, the contractor's responsibility for obtaining permits, the payment schedule, a detailed list of materials with costs, warranties for materials and workmanship, procedures for change orders, responsibility for cleanup and property damage, and the right to cancel within three business days. There are two main types of contracts: fixed price, which provides itemized costs and protects from budget overruns, and time and materials contracts.