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In California, a written contract is required for all home improvement projects over $500 to avoid misunderstandings. The contract should include a description of the work, materials to be used, project timeline, cost, payment schedule, permit responsibilities, cancellation rights, mechanics liens, and allowable delays. Ensure the contract and any changes are in writing, legible, and easy to understand. Get verbal promises written into the contract, and include details about materials, sizes, colors, specific materials, and work details. Remember to document everything.