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A home repair contract is essential when hiring contractors, even if the cost seems low. State laws often require written contracts for projects over $500. The contract should include start and completion dates, work permits, payment schedule, materials list, warranties, change orders, clean-up, property damage responsibility, and a 3-day cancellation option. Two types of contracts are fixed price and time/materials. A fixed price contract specifies costs, protecting against exceeding estimates and staying within budget.