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When hiring a contractor for home repairs, a written contract is essential for protection against dishonest practices, especially for projects over $500, as required by many state laws. Key elements of a contract should include project start and completion dates, contractor responsibility for obtaining permits, a payment schedule, a detailed list of materials with costs, warranties for materials and workmanship, handling of change orders, responsibility for cleanup and property damage, and your right to cancel within three business days. There are two contract types: fixed price, which provides cost itemization and budget protection, and time and materials contracts.