How to Set Up Deposit Requirements on Your Quotes
Why Every Contractor Should Require Deposits
A deposit does three critical things:
- Proves the client is serious — tire-kickers don't pay deposits
- Covers your material costs — you're not fronting thousands of dollars
- Locks your schedule — a paid deposit means a committed start date
Industry Standard Deposit Amounts
| Trade | Typical Deposit | Why |
|---|---|---|
| Roofing | 30-40% | High material costs |
| Concrete | 30-50% | Materials ordered for specific job |
| General Contracting | 25-33% | Long project timeline |
| Painting | 25-30% | Moderate material costs |
| Electrical/Plumbing | 0-25% | Lower material costs |
| Landscaping | 30-40% | Plants and materials ordered |
How to Present It
Don't apologize for requiring a deposit. Frame it professionally:
"A 30% deposit is required to reserve your project date and order materials. The remaining balance is due upon completion."
Include deposit terms on every quote — automatically. Your invoicing app should calculate the deposit amount from the total.
What About Payment Plans?
For jobs over $5,000, consider a 3-payment structure:
- 30% deposit to start
- 40% at midpoint/progress milestone
- 30% upon completion
This keeps cash flowing throughout the project and reduces final-payment disputes.
"I had three clients ghost me after I ordered their materials — $4,800 in stock I couldn't return. Now I require 40% deposit before I order anything. Zero ghosts since." — Ray C., Denver CO
Your next step: Add a deposit line to your next quote. Start at 30% and adjust by trade.