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The contract must contain specific details , and also specify the tasks to be completed. The specific materials and costs for labor are required to be disclosed in addition to the total amount for the work. Contracts should contain the clause of liquidated damages, that outlines the amount of the compensation in case the contractor violates the terms of the contract. The scope of work must include the names and numbers of all the parties that are involved as well as their license numbers for the company. When the document is unclear or contains incorrect details, it's not likely to be valid.