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