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When hiring someone for home repair, a contract is essential for protection against dishonest contractors, even for small projects. Many state laws necessitate written contracts for projects over $500. Key elements of a contract should include project start and completion dates, contractors' responsibilities for permits, a payment schedule, a detailed list of materials (including costs, color, type, and brand), warranties for materials and workmanship, procedures for change orders, responsibility for property cleanup and damage, and your right to cancel within three days. There are two types of contracts: fixed price, which itemizes costs and protects against budget overruns, and time and materials contracts.