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In California, a written contract is required for home improvement projects exceeding $500 to prevent misunderstandings. The contract should detail the work description, materials used, project timeline, total cost, and payment schedule. It must clarify who is responsible for permits and include cancellation rights, mechanics liens, and allowable delays. Any modifications to the contract must also be documented in writing and should be clear and easy to understand. Important details, such as specific materials (size and color) and work specifics, should be explicitly outlined. Always ensure any verbal promises are included in the written contract.