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When hiring someone for home repair work, a contract is essential for protection against dishonest contractors, especially for projects over $500, as many state laws require it. A good contract should include the project start and completion dates, the contractor's responsibility for obtaining work permits, a payment schedule, a detailed list of materials (including costs, color, type, and brand), warranties on materials and workmanship, procedures for handling change orders, responsibility for clean-up and property damage, and your right to cancel within three business days. There are two types of contracts: fixed price, which itemizes all costs to prevent budget overruns, and time and materials contracts.