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In California, a written contract is mandatory for home improvement projects over $500. This contract helps prevent misunderstandings and should include details such as the work description, materials to be used, project timeline, total cost, and payment schedule. It must also outline who is responsible for obtaining permits, cancellation rights, mechanics liens, and allowable delays. Any changes made to the contract must also be documented in writing, ensuring clarity and legibility. It's essential to capture any verbal promises in the contract, and it should detail the type, size, and color of materials, along with any specific items important to the job.