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A written contract is required for all home improvement projects over $500 in California to avoid misunderstandings. The contract should include a description of the work, materials used, timeline, cost, payment schedule, permit responsibility, cancellation rights, mechanics liens, and allowable delays. It must be in writing, legible, and any changes must also be in writing. Make sure verbal promises are written into the contract. Include all details about materials, specific materials, and work details. Remember to get everything in writing and ensure the contract is clear and detailed.