Before money changes hands
How much should you pay a contractor up front?
There is no single safe percentage or nationwide legal limit. The right first question is not “Is 30% normal?” It is “What does the applicable law and this written contract support?”
Start with the jurisdiction, not an internet rule of thumb
Deposit limits and contract rules vary. The FTC says some states limit down payments and recommends contacting the state or local consumer agency. California, for example, generally limits a home-improvement down payment to $1,000 or 10% of the contract price, whichever is less. That California rule is an example, not a national standard.
Convert the request into a percentage
Divide the requested deposit by the total quoted price. A $6,800 deposit on a $17,000 quote is 40%. The percentage does not decide whether the request is lawful or fair, but it makes comparison easier and exposes front-loaded payment schedules.
Ask what the money buys before work begins
A written answer should identify materials, permits, scheduling commitments, or another concrete project cost. Ask whether materials will be ordered specifically for your property, who owns them after payment, and what documentation you will receive. “That is our standard deposit” is not the same as a payment schedule tied to the project.
Keep later payments aligned with delivered value
Progress payments should correspond to defined work or delivered materials. New York’s attorney general, for example, advises homeowners to establish a payment schedule and notes that state law regulates how advance payments are held or protected. Your state may use a different system.
Pause when the payment route increases your risk
Pressure to decide immediately, full payment up front, cash-only demands, unexplained wire transfers, or a payee that does not match the quoted business all deserve clarification. The FTC specifically identifies pressure, full upfront payment, and cash-only demands as scam tactics.
Put these five answers in writing
- The exact legal person or business receiving payment
- The amount and percentage of the total quote
- The materials, work, or milestone funded
- The remaining payment schedule
- The cancellation, refund, and change-order terms