San Fran east Bay Area - writing contracts while flipping

Any recommendation on how to document all the work on a flip project? In my last (my first flip) project, things were executed in good faith for the most part. There was literally no documentation. Also, most of contractors don't have a License. Any contract we do with them, is it legally allowed and is it valid? Things I need guidance on is:- 1) how to document a contract 2) timeline - what item will be done in what date and in what sequence. Should there be a penalty in case project is delayed for more than 1 week or so - should there be a penalty? Thanks in advance ....