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+# Authorization Implementation Guide
+
+## Project Overview
+
+This document outlines the implementation strategy for adding authentication and authorization to the Project Management Panel - a Next.js 15 application with SQLite database.
+
+## Current State Analysis
+
+### ✅ What We Have
+- **Framework**: Next.js 15 with App Router
+- **Database**: SQLite with better-sqlite3
+- **API Routes**: Multiple unprotected endpoints (projects, contracts, tasks, notes)
+- **UI**: Basic navigation and CRUD interfaces
+- **Security**: ⚠️ **NONE** - All endpoints are publicly accessible
+
+### ❌ What's Missing
+- User authentication system
+- Session management
+- Role-based access control
+- API route protection
+- Input validation & sanitization
+- Security middleware
+
+## Recommended Implementation Strategy
+
+### 1. Authentication Solution: NextAuth.js
+
+**Why NextAuth.js?**
+- ✅ Native Next.js 15 App Router support
+- ✅ Database session management
+- ✅ Built-in security features (CSRF, JWT handling)
+- ✅ Flexible provider system
+- ✅ SQLite adapter available
+
+### 2. Role-Based Access Control (RBAC)
+
+**Proposed User Roles:**
+
+| Role | Permissions | Use Case |
+|------|-------------|----------|
+| **Admin** | Full system access, user management | System administrators |
+| **Project Manager** | Manage all projects/tasks, view reports | Team leads, supervisors |
+| **User** | View/edit assigned projects/tasks | Regular employees |
+| **Read-only** | View-only access to data | Clients, stakeholders |
+
+## Implementation Plan
+
+### Phase 1: Foundation Setup
+
+#### 1.1 Install Dependencies
+
+```bash
+npm install next-auth@beta @auth/better-sqlite3-adapter
+npm install bcryptjs zod
+npm install @types/bcryptjs  # if using TypeScript
+```
+
+#### 1.2 Environment Configuration
+
+Create `.env.local`:
+```env
+# NextAuth.js Configuration
+NEXTAUTH_SECRET=your-super-secret-key-here-minimum-32-characters
+NEXTAUTH_URL=http://localhost:3000
+
+# Database
+DATABASE_URL=./data/database.sqlite
+
+# Optional: Email configuration for password reset
+EMAIL_SERVER_HOST=smtp.gmail.com
+EMAIL_SERVER_PORT=587
+EMAIL_SERVER_USER=your-email@gmail.com
+EMAIL_SERVER_PASSWORD=your-app-password
+EMAIL_FROM=noreply@yourapp.com
+```
+
+#### 1.3 Database Schema Extension
+
+Add to `src/lib/init-db.js`:
+
+```sql
+-- Users table
+CREATE TABLE IF NOT EXISTS users (
+  id TEXT PRIMARY KEY DEFAULT (lower(hex(randomblob(16)))),
+  name TEXT NOT NULL,
+  email TEXT UNIQUE NOT NULL,
+  password_hash TEXT NOT NULL,
+  role TEXT CHECK(role IN ('admin', 'project_manager', 'user', 'read_only')) DEFAULT 'user',
+  created_at TEXT DEFAULT CURRENT_TIMESTAMP,
+  updated_at TEXT DEFAULT CURRENT_TIMESTAMP,
+  is_active INTEGER DEFAULT 1,
+  last_login TEXT,
+  failed_login_attempts INTEGER DEFAULT 0,
+  locked_until TEXT
+);
+
+-- NextAuth.js required tables
+CREATE TABLE IF NOT EXISTS accounts (
+  id TEXT PRIMARY KEY DEFAULT (lower(hex(randomblob(16)))),
+  userId TEXT NOT NULL,
+  type TEXT NOT NULL,
+  provider TEXT NOT NULL,
+  providerAccountId TEXT NOT NULL,
+  refresh_token TEXT,
+  access_token TEXT,
+  expires_at INTEGER,
+  token_type TEXT,
+  scope TEXT,
+  id_token TEXT,
+  session_state TEXT,
+  created_at TEXT DEFAULT CURRENT_TIMESTAMP,
+  FOREIGN KEY (userId) REFERENCES users(id) ON DELETE CASCADE
+);
+
+CREATE TABLE IF NOT EXISTS sessions (
+  id TEXT PRIMARY KEY DEFAULT (lower(hex(randomblob(16)))),
+  sessionToken TEXT UNIQUE NOT NULL,
+  userId TEXT NOT NULL,
+  expires TEXT NOT NULL,
+  created_at TEXT DEFAULT CURRENT_TIMESTAMP,
+  FOREIGN KEY (userId) REFERENCES users(id) ON DELETE CASCADE
+);
+
+CREATE TABLE IF NOT EXISTS verification_tokens (
+  identifier TEXT NOT NULL,
+  token TEXT UNIQUE NOT NULL,
+  expires TEXT NOT NULL,
+  created_at TEXT DEFAULT CURRENT_TIMESTAMP,
+  PRIMARY KEY (identifier, token)
+);
+
+-- Audit log table for security tracking
+CREATE TABLE IF NOT EXISTS audit_logs (
+  id INTEGER PRIMARY KEY AUTOINCREMENT,
+  user_id TEXT,
+  action TEXT NOT NULL,
+  resource_type TEXT,
+  resource_id TEXT,
+  ip_address TEXT,
+  user_agent TEXT,
+  timestamp TEXT DEFAULT CURRENT_TIMESTAMP,
+  details TEXT,
+  FOREIGN KEY (user_id) REFERENCES users(id)
+);
+
+-- Create indexes for performance
+CREATE INDEX IF NOT EXISTS idx_users_email ON users(email);
+CREATE INDEX IF NOT EXISTS idx_sessions_token ON sessions(sessionToken);
+CREATE INDEX IF NOT EXISTS idx_accounts_user ON accounts(userId);
+CREATE INDEX IF NOT EXISTS idx_audit_user_timestamp ON audit_logs(user_id, timestamp);
+```
+
+### Phase 2: Authentication Core
+
+#### 2.1 NextAuth.js Configuration
+
+Create `src/lib/auth.js`:
+
+```javascript
+import NextAuth from "next-auth"
+import CredentialsProvider from "next-auth/providers/credentials"
+import { BetterSQLite3Adapter } from "@auth/better-sqlite3-adapter"
+import db from "./db.js"
+import bcrypt from "bcryptjs"
+import { z } from "zod"
+
+const loginSchema = z.object({
+  email: z.string().email("Invalid email format"),
+  password: z.string().min(6, "Password must be at least 6 characters")
+})
+
+export const { handlers, auth, signIn, signOut } = NextAuth({
+  adapter: BetterSQLite3Adapter(db),
+  session: {
+    strategy: "database",
+    maxAge: 30 * 24 * 60 * 60, // 30 days
+    updateAge: 24 * 60 * 60, // 24 hours
+  },
+  providers: [
+    CredentialsProvider({
+      name: "credentials",
+      credentials: {
+        email: { label: "Email", type: "email" },
+        password: { label: "Password", type: "password" }
+      },
+      async authorize(credentials, req) {
+        try {
+          // Validate input
+          const validatedFields = loginSchema.parse(credentials)
+          
+          // Check if user exists and is active
+          const user = db.prepare(`
+            SELECT id, email, name, password_hash, role, is_active, 
+                   failed_login_attempts, locked_until
+            FROM users 
+            WHERE email = ? AND is_active = 1
+          `).get(validatedFields.email)
+          
+          if (!user) {
+            throw new Error("Invalid credentials")
+          }
+          
+          // Check if account is locked
+          if (user.locked_until && new Date(user.locked_until) > new Date()) {
+            throw new Error("Account temporarily locked")
+          }
+          
+          // Verify password
+          const isValidPassword = await bcrypt.compare(validatedFields.password, user.password_hash)
+          
+          if (!isValidPassword) {
+            // Increment failed attempts
+            db.prepare(`
+              UPDATE users 
+              SET failed_login_attempts = failed_login_attempts + 1,
+                  locked_until = CASE 
+                    WHEN failed_login_attempts >= 4 
+                    THEN datetime('now', '+15 minutes')
+                    ELSE locked_until 
+                  END
+              WHERE id = ?
+            `).run(user.id)
+            
+            throw new Error("Invalid credentials")
+          }
+          
+          // Reset failed attempts and update last login
+          db.prepare(`
+            UPDATE users 
+            SET failed_login_attempts = 0, 
+                locked_until = NULL,
+                last_login = CURRENT_TIMESTAMP
+            WHERE id = ?
+          `).run(user.id)
+          
+          // Log successful login
+          logAuditEvent(user.id, 'LOGIN_SUCCESS', 'user', user.id, req)
+          
+          return {
+            id: user.id,
+            email: user.email,
+            name: user.name,
+            role: user.role
+          }
+        } catch (error) {
+          console.error("Login error:", error)
+          return null
+        }
+      }
+    })
+  ],
+  callbacks: {
+    async jwt({ token, user, account }) {
+      if (user) {
+        token.role = user.role
+        token.userId = user.id
+      }
+      return token
+    },
+    async session({ session, token, user }) {
+      if (token) {
+        session.user.id = token.userId || token.sub
+        session.user.role = token.role || user?.role
+      }
+      return session
+    },
+    async signIn({ user, account, profile, email, credentials }) {
+      // Additional sign-in logic if needed
+      return true
+    }
+  },
+  pages: {
+    signIn: '/auth/signin',
+    signOut: '/auth/signout',
+    error: '/auth/error'
+  },
+  events: {
+    async signOut({ session, token }) {
+      if (session?.user?.id) {
+        logAuditEvent(session.user.id, 'LOGOUT', 'user', session.user.id)
+      }
+    }
+  }
+})
+
+// Audit logging helper
+function logAuditEvent(userId, action, resourceType, resourceId, req = null) {
+  try {
+    db.prepare(`
+      INSERT INTO audit_logs (user_id, action, resource_type, resource_id, ip_address, user_agent)
+      VALUES (?, ?, ?, ?, ?, ?)
+    `).run(
+      userId,
+      action,
+      resourceType,
+      resourceId,
+      req?.ip || 'unknown',
+      req?.headers?.['user-agent'] || 'unknown'
+    )
+  } catch (error) {
+    console.error("Audit log error:", error)
+  }
+}
+```
+
+#### 2.2 API Route Handlers
+
+Create `src/app/api/auth/[...nextauth]/route.js`:
+
+```javascript
+import { handlers } from "@/lib/auth"
+
+export const { GET, POST } = handlers
+```
+
+### Phase 3: Authorization Middleware
+
+#### 3.1 API Protection Middleware
+
+Create `src/lib/middleware/auth.js`:
+
+```javascript
+import { auth } from "@/lib/auth"
+import { NextResponse } from "next/server"
+import { z } from "zod"
+
+// Role hierarchy for permission checking
+const ROLE_HIERARCHY = {
+  'admin': 4,
+  'project_manager': 3,
+  'user': 2,
+  'read_only': 1
+}
+
+export function withAuth(handler, options = {}) {
+  return async (req, context) => {
+    try {
+      const session = await auth()
+      
+      // Check if user is authenticated
+      if (!session?.user) {
+        return NextResponse.json(
+          { error: "Authentication required" }, 
+          { status: 401 }
+        )
+      }
+      
+      // Check if user account is active
+      const user = db.prepare("SELECT is_active FROM users WHERE id = ?").get(session.user.id)
+      if (!user?.is_active) {
+        return NextResponse.json(
+          { error: "Account deactivated" }, 
+          { status: 403 }
+        )
+      }
+      
+      // Check role-based permissions
+      if (options.requiredRole && !hasPermission(session.user.role, options.requiredRole)) {
+        logAuditEvent(session.user.id, 'ACCESS_DENIED', options.resource || 'api', req.url)
+        return NextResponse.json(
+          { error: "Insufficient permissions" }, 
+          { status: 403 }
+        )
+      }
+      
+      // Check resource-specific permissions
+      if (options.checkResourceAccess) {
+        const hasAccess = await options.checkResourceAccess(session.user, context.params)
+        if (!hasAccess) {
+          return NextResponse.json(
+            { error: "Access denied to this resource" }, 
+            { status: 403 }
+          )
+        }
+      }
+      
+      // Validate request body if schema provided
+      if (options.bodySchema && (req.method === 'POST' || req.method === 'PUT' || req.method === 'PATCH')) {
+        try {
+          const body = await req.json()
+          options.bodySchema.parse(body)
+        } catch (error) {
+          return NextResponse.json(
+            { error: "Invalid request data", details: error.errors }, 
+            { status: 400 }
+          )
+        }
+      }
+      
+      // Add user info to request
+      req.user = session.user
+      req.session = session
+      
+      // Call the original handler
+      return await handler(req, context)
+    } catch (error) {
+      console.error("Auth middleware error:", error)
+      return NextResponse.json(
+        { error: "Internal server error" }, 
+        { status: 500 }
+      )
+    }
+  }
+}
+
+export function hasPermission(userRole, requiredRole) {
+  return ROLE_HIERARCHY[userRole] >= ROLE_HIERARCHY[requiredRole]
+}
+
+// Helper for read-only operations
+export function withReadAuth(handler) {
+  return withAuth(handler, { requiredRole: 'read_only' })
+}
+
+// Helper for user-level operations
+export function withUserAuth(handler) {
+  return withAuth(handler, { requiredRole: 'user' })
+}
+
+// Helper for project manager operations
+export function withManagerAuth(handler) {
+  return withAuth(handler, { requiredRole: 'project_manager' })
+}
+
+// Helper for admin operations
+export function withAdminAuth(handler) {
+  return withAuth(handler, { requiredRole: 'admin' })
+}
+```
+
+#### 3.2 Client-Side Route Protection
+
+Create `src/components/auth/ProtectedRoute.js`:
+
+```javascript
+"use client"
+
+import { useSession } from "next-auth/react"
+import { useRouter } from "next/navigation"
+import { useEffect } from "react"
+
+export function ProtectedRoute({ children, requiredRole = null, fallback = null }) {
+  const { data: session, status } = useSession()
+  const router = useRouter()
+  
+  useEffect(() => {
+    if (status === "loading") return // Still loading
+    
+    if (!session) {
+      router.push('/auth/signin')
+      return
+    }
+    
+    if (requiredRole && !hasPermission(session.user.role, requiredRole)) {
+      router.push('/unauthorized')
+      return
+    }
+  }, [session, status, router, requiredRole])
+  
+  if (status === "loading") {
+    return <div className="flex justify-center items-center h-64">Loading...</div>
+  }
+  
+  if (!session) {
+    return fallback || <div>Redirecting to login...</div>
+  }
+  
+  if (requiredRole && !hasPermission(session.user.role, requiredRole)) {
+    return fallback || <div>Access denied</div>
+  }
+  
+  return children
+}
+
+function hasPermission(userRole, requiredRole) {
+  const roleHierarchy = {
+    'admin': 4,
+    'project_manager': 3,
+    'user': 2,
+    'read_only': 1
+  }
+  
+  return roleHierarchy[userRole] >= roleHierarchy[requiredRole]
+}
+```
+
+### Phase 4: User Interface Components
+
+#### 4.1 Authentication Pages
+
+Pages to create:
+- `src/app/auth/signin/page.js` - Login form
+- `src/app/auth/signout/page.js` - Logout confirmation
+- `src/app/auth/error/page.js` - Error handling
+- `src/app/unauthorized/page.js` - Access denied page
+
+#### 4.2 Navigation Updates
+
+Update `src/components/ui/Navigation.js` to include:
+- Login/logout buttons
+- User info display
+- Role-based menu items
+
+#### 4.3 User Management Interface
+
+For admin users:
+- User listing and management
+- Role assignment
+- Account activation/deactivation
+
+### Phase 5: Security Enhancements
+
+#### 5.1 Input Validation Schemas
+
+Create `src/lib/schemas/` with Zod schemas for all API endpoints:
+
+```javascript
+// src/lib/schemas/project.js
+import { z } from "zod"
+
+export const createProjectSchema = z.object({
+  contract_id: z.number().int().positive(),
+  project_name: z.string().min(1).max(255),
+  project_number: z.string().min(1).max(50),
+  address: z.string().optional(),
+  // ... other fields
+})
+
+export const updateProjectSchema = createProjectSchema.partial()
+```
+
+#### 5.2 Rate Limiting
+
+Implement rate limiting for sensitive endpoints:
+
+```javascript
+// src/lib/middleware/rateLimit.js
+const attempts = new Map()
+
+export function withRateLimit(handler, options = { maxAttempts: 5, windowMs: 15 * 60 * 1000 }) {
+  return async (req, context) => {
+    const key = req.ip || 'unknown'
+    const now = Date.now()
+    const window = attempts.get(key) || { count: 0, resetTime: now + options.windowMs }
+    
+    if (now > window.resetTime) {
+      window.count = 1
+      window.resetTime = now + options.windowMs
+    } else {
+      window.count++
+    }
+    
+    attempts.set(key, window)
+    
+    if (window.count > options.maxAttempts) {
+      return NextResponse.json(
+        { error: "Too many requests" }, 
+        { status: 429 }
+      )
+    }
+    
+    return handler(req, context)
+  }
+}
+```
+
+## Implementation Checklist
+
+### Phase 1: Foundation
+- [ ] Install dependencies
+- [ ] Create environment configuration
+- [ ] Extend database schema
+- [ ] Create initial admin user script
+
+### Phase 2: Authentication
+- [ ] Configure NextAuth.js
+- [ ] Create API route handlers
+- [ ] Test login/logout functionality
+
+### Phase 3: Authorization
+- [ ] Implement API middleware
+- [ ] Protect existing API routes
+- [ ] Create client-side route protection
+
+### Phase 4: User Interface
+- [ ] Create authentication pages
+- [ ] Update navigation component
+- [ ] Build user management interface
+
+### Phase 5: Security
+- [ ] Add input validation to all endpoints
+- [ ] Implement rate limiting
+- [ ] Add audit logging
+- [ ] Create security headers middleware
+
+## Security Best Practices
+
+### 1. Password Security
+- Minimum 8 characters
+- Require special characters, numbers
+- Hash with bcrypt (cost factor 12+)
+- Implement password history
+
+### 2. Session Security
+- Secure cookies
+- Session rotation
+- Timeout handling
+- Device tracking
+
+### 3. API Security
+- Input validation on all endpoints
+- SQL injection prevention (prepared statements)
+- XSS protection
+- CSRF tokens
+
+### 4. Audit & Monitoring
+- Log all authentication events
+- Monitor failed login attempts
+- Track permission changes
+- Alert on suspicious activity
+
+## Testing Strategy
+
+### 1. Authentication Tests
+- Valid/invalid login attempts
+- Password reset functionality
+- Session expiration
+- Account lockout
+
+### 2. Authorization Tests
+- Role-based access control
+- API endpoint protection
+- Resource-level permissions
+- Privilege escalation attempts
+
+### 3. Security Tests
+- SQL injection attempts
+- XSS attacks
+- CSRF attacks
+- Rate limiting
+
+## Deployment Considerations
+
+### 1. Environment Variables
+- Use strong, random secrets
+- Different keys per environment
+- Secure secret management
+
+### 2. Database Security
+- Regular backups
+- Encryption at rest
+- Network security
+- Access logging
+
+### 3. Application Security
+- HTTPS enforcement
+- Security headers
+- Content Security Policy
+- Regular security updates
+
+## Migration Strategy
+
+### 1. Development Phase
+- Implement on development branch
+- Test thoroughly with sample data
+- Document all changes
+
+### 2. Staging Deployment
+- Deploy to staging environment
+- Performance testing
+- Security testing
+- User acceptance testing
+
+### 3. Production Deployment
+- Database backup before migration
+- Gradual rollout
+- Monitor for issues
+- Rollback plan ready
+
+## Resources and Documentation
+
+### NextAuth.js
+- [Official Documentation](https://next-auth.js.org/)
+- [Better SQLite3 Adapter](https://authjs.dev/reference/adapter/better-sqlite3)
+
+### Security Libraries
+- [Zod Validation](https://zod.dev/)
+- [bcryptjs](https://www.npmjs.com/package/bcryptjs)
+
+### Best Practices
+- [OWASP Top 10](https://owasp.org/www-project-top-ten/)
+- [Next.js Security Guidelines](https://nextjs.org/docs/advanced-features/security-headers)
+
+---
+
+**Next Steps**: Choose which phase to implement first and create detailed implementation tickets for development.