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In California, a written contract is required for all home improvement projects over $500 to avoid misunderstandings. The contract should include a description of the work, materials, project timeline, cost, payment schedule, permit responsibilities, cancellation rights, mechanics liens, and allowable delays. It must be written, clear, and any changes made to it should be documented. Everything promised verbally should be included in the contract. Remember to describe materials in detail, including size, color, quantity, and important details for the job.