Including a Deposit Requirement

Many contractors require a deposit before starting work — especially for large jobs or new clients. Here is how to include a deposit requirement in your quotes.

Adding a Deposit Line Item to a Quote

The simplest approach: add a "Deposit Required" line item to your quote:

1. Create or edit a quote
2. Add a line item: Description: "50% deposit required to begin work" | Amount: [calculated deposit amount]
3. Add a note: "Work begins upon receipt of deposit. Remaining balance due upon completion."

Deposit as a Separate Invoice

For formal deposit collection:

1. Create a separate invoice for just the deposit amount
2. Send it to the customer before starting work
3. Once paid, create the final invoice for the remaining balance when work is complete

This approach gives you a clean payment record for each transaction.

Typical Deposit Amounts

• Small jobs ($500 or less): 50% deposit is common
• Medium jobs ($500–$5,000): 30–50% deposit
• Large jobs ($5,000+): 25–33% deposit
• Material-heavy jobs: Deposit equal to material costs to cover your out-of-pocket

Legal Considerations

Some states cap how much of a deposit you can require on residential work. California, for example, caps deposits at 10% of the contract price or $1,000, whichever is less. Check your state's contractor licensing board rules.

Protecting Yourself

Always collect the deposit before ordering materials or scheduling the job. A verbal agreement to pay is not reliable — a deposit demonstrates genuine commitment.