When is a contractor required to obtain a written contract?

A contractor is required to obtain a written contract for projects exceeding $500 because this requirement is established to protect both the contractor and the client. A written contract serves as a formal agreement that outlines the scope of work, pricing, timelines, and other essential details of the project. By stipulating a monetary threshold, the law recognizes that as project costs increase, so do the complexities and potential disputes that could arise. Therefore, having a written contract for projects above this threshold promotes transparency, accountability, and clear communication between parties involved.

Lower project values might not necessarily require such formalities, as they could still be conducted on a smaller scale with more informal agreements. Moreover, while certain projects such as those for government contracts or specific client types like residential customers may have additional regulations or requirements, the general rule establishes the $500 threshold as a critical point for triggering the need for a written contract in any contracting work.