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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 scope, materials used, project timeline, total cost, payment schedule, permit responsibilities, rights to cancel, mechanics liens, and allowable delays. Any changes must also be documented in writing. Clarity is essential; the contract must be legible and easy to understand. Ensure that all verbal promises are included in the contract. Important elements to include are a comprehensive description of materials (size, color, quantity) and specific work details.