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In California, a written contract is required for all home improvement projects over $500. A contract is important to avoid misunderstandings about the job, including a description of the work, materials used, project timeline, cost, payment schedule, permits, cancellation rights, mechanics liens, and delays. The contract should be in writing, legible, and easy to understand, with any changes also documented. Remember to get everything in writing, detailing materials, sizes, colors, specific materials, and work specifics. Verbal promises should also be written into the contract for clarity.