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In California, a written contract is required for all home improvement projects exceeding $500 to prevent misunderstandings. The contract should include a detailed description of the work, materials to be used, project timeline, total cost, and payment schedule. Additionally, it must outline who is responsible for obtaining necessary permits and provide information about cancellation rights, mechanics liens, and permissible delays. Any changes to the contract must also be documented in writing. It's crucial that the contract is clear and legible, and all verbal promises should be included in the written agreement. Key elements include specific materials, sizes, colors, and detailed work requirements.