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When hiring someone for home repairs, a contract is crucial for protection against dishonest contractors. Many states require written contracts for projects over $500. Contracts should outline the project’s start and completion dates, the contractor's responsibility for obtaining work permits, the payment schedule, a detailed list of materials with costs, and warranties. They should also address change orders, responsibility for cleanup and damages, and the right to cancel within three business days. There are two types of contracts: fixed price, which details all costs and protects against exceeding estimates, and time and materials contracts. Each serves specific needs in managing project expenses.