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When hiring home repair contractors, a written contract is vital for protection against dishonest practices, especially for projects exceeding $500, as required by many state laws. Key elements of a contract should include project start and completion dates, the contractor's obligation to secure permits, a payment schedule, a detailed list of materials (with costs, color, type, and brand), warranties for both materials and workmanship, procedures for change orders, liability for property cleanup and damage, and your right to cancel within three business days. There are two types of contracts: fixed price, which outlines all costs and protects against budget overruns, and time and materials contracts.