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When hiring a contractor for home repair, a written contract is essential for protection against dishonest practices, especially for projects exceeding $500, as many state laws mandate it. The contract should specify the project start and completion dates, the contractor's responsibility to secure permits, a payment schedule, and a detailed list of materials with costs, types, and warranties. It should also address any changes to the project, cleanup responsibility, damage liability, and your right to cancel within three business days. There are two contract types: fixed price, which outlines all costs up front and protects against budget overruns, and time and materials.