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When hiring a contractor for home repair work, a written contract is essential for protection against dishonest practices, especially for projects over $500, as many states legally require it. The contract should detail the project start and completion dates, the contractor’s responsibility for obtaining permits, a payment schedule, a comprehensive list of materials with costs and warranties, procedures for change orders, cleanup responsibilities, and your right to cancel within three business days. There are two contract types: fixed price, which outlines all costs and protects against budget overruns, and time and materials contracts. Each serves different needs based on project specifics.