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A written contract is required for all home improvement projects over $500 in California to avoid misunderstandings. The contract should describe the work, materials, project timeline, cost, payment schedule, permit responsibility, cancellation rights, liens, and delays. It must be clear, legible, and include any changes. Ensure verbal promises are written in the contract. Specify material details like size, color, quantity, and importance to the job. Remember to include work details and information to protect your interests.