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In California, a written contract is required for all home improvement projects exceeding $500. This contract is essential to prevent misunderstandings and should detail the work to be done, materials used, project timeline, total cost, and payment schedule. It must also clarify who is responsible for obtaining necessary permits, your rights to cancel, mechanics liens, and allowable delays. Any changes to the contract must also be documented in writing, which should be clear and understandable. It's crucial to have all verbal promises included in the written agreement, and the contract should specify materials in detail, including size, color, and any specific requirements for the job.