A deposit does two things: it funds the materials so you are not bankrolling the customer, and it psychologically commits them to the job. No deposit, no commitment — the customer will reschedule, ghost, or shop you against three other contractors who quoted after you did. The trick is asking for it confidently.
How much to charge by job type.
State-specific caps. Several states cap residential contractor deposits. The most restrictive: California ($1,000 or 10%, whichever is less, on home improvement contracts). Oregon, Nevada, and Maryland have similar but less strict rules.
How to ask for the deposit. Build the deposit into the quote so it is never a surprise. The line on the quote reads: 'Total: $4,500. Deposit due at contract signing: $1,500. Balance due upon completion: $3,000.'
What if the customer cancels after paying the deposit?. Refund the deposit minus any materials already ordered (non-returnable items: full charge; returnable items: refund minus restocking fee) and any design or planning time already billed. State this refund policy on the quote document so it is not a surprise.
Frequently asked questions
Should I ask for a deposit on a $300 service call?
No. Deposits make sense above $1,000. Smaller jobs are paid at completion via card-on-truck or a payment link sent at the time of service.
Can I take a credit card for the deposit?
Yes — and you should. Card payments via Stripe or Square typically clear in 1–2 business days and reduce no-show risk because the customer has skin in the game.
What's progress billing?
Splitting a large project into payment milestones (e.g., 20% deposit, 30% at rough-in, 30% at finish, 20% at completion). It funds your cash flow during long jobs and limits your exposure if the customer disappears.
