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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 to be performed, materials used, project timelines, costs, and payment schedules. It must specify who is responsible for obtaining necessary permits, include cancellation rights, mechanics liens, and allow for acceptable delays. All changes to the contract must also be documented in writing, ensuring clarity and legibility. Key points include getting everything in writing, describing materials in detail (size, color, quantity), and outlining specific job requirements.