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In California, a written contract is mandatory for home improvement projects exceeding $500 to prevent misunderstandings. The contract should detail the work to be performed, materials to be used, project timeline, total cost, and payment schedule. It must also specify who is responsible for obtaining permits, your rights to cancel, mechanics liens, and permissible delays. Any modifications must also be documented in writing, and the contract should be clear and easy to understand. Ensure all verbal promises are included in the written contract. Key highlights include detailing materials (size and color), quantities, and essential job specifics.