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Since this one is still open - even if it is rather long in the tooth. Contract job on Craigslist (or most other USA-centric sites primarily means that they will be treating you (for payroll purposes) like a 1099 self-employed contractor, rather than like a W2 employee. The contract may be for a stated length of time (duration) or it may be indeterminate - based on length of project/project completion.
Some employers like to hire someone on a contract basis, then may offer permanent, full-time employment if they like your work. I used to do this sometimes when I was hiring for positions where a short interview or skills review doesn't offer meaningful insight on how well the person may be able to fit in and work with the rest of the team.
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