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When hiring for home repair work, a written contract is essential to protect against dishonest contractors, especially for projects over $500, as many state laws require it. The contract should specify the project start and completion dates, the contractor's responsibility for obtaining work permits, the payment schedule, and a detailed list of materials, including costs, colors, types, and brands. It should also cover warranties, handling of change orders, responsibility for cleanup and damage, and your right to cancel within 3 business days. There are two main types of contracts: fixed price, which itemizes costs to prevent budget overruns, and time and materials contracts.
