How to Ask for a Deposit Without Losing the Job (USA Contractors)
Asking for a deposit is completely standard in US contracting – but many contractors still feel awkward about it. You shouldn’t. A deposit protects both you and the customer. Here’s how to ask for it naturally.
What to Say
When presenting your quote, include the deposit as a matter-of-fact line item – not a request:
“I require a 25% deposit to schedule your start date and order materials. The balance is due on completion.”
That’s it. State it as a fact, not a question. Most customers accept it without hesitation because it’s genuinely standard practice.
What Percentage to Charge
| Job size | Typical deposit |
|---|---|
| Under $2,000 | 33-50% |
| $2,000-$10,000 | 25-33% |
| $10,000-$50,000 | 20-25% + draw schedule |
| Over $50,000 | Progress billing (AIA payment schedule) |
State Laws on Contractor Deposits
Some states cap contractor deposits: – California: Cannot require more than 10% or $1,000 (whichever is less) for home improvement contracts – Maryland, Virginia: Various caps on residential deposits – Florida: Specific requirements for contracts over $2,500
Always check your state’s contractor law. Most caps apply to home improvement contractors – commercial work is typically uncapped.
FAQs
What if a customer refuses to pay a deposit? A customer unwilling to pay any deposit is a risk flag. You can negotiate the amount, but some deposit is non-negotiable for most US contractors – it covers your material costs and time to schedule.
Should I refund the deposit if I cancel? Your contract should specify this clearly. Standard practice: full refund if you cancel; partial or no refund if the customer cancels after you’ve ordered materials or turned away other work.
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Related reading:
- How to Write a Quote That Wins the Job as a US Contractor
- How to Follow Up a Quote Without Being Pushy (USA Contractors)
- How to Write Terms and Conditions for a US Contractor Quote
- The Difference Between a Quote and an Estimate for US Contractors
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