Most small contractors charge somewhere between 10% and 50% of the job total as a deposit, with the exact number depending on job size, material cost and how much you trust the client — but deposit limits are regulated in some provinces and states, so treat any number here as a starting point, not a rule.
Why deposits exist
A deposit does two things: it protects you from a client who backs out after you've ordered materials or turned down other work, and it gives you cash to actually buy those materials without floating the cost yourself. It's not a bonus — it's a way to align risk with who's taking it.
Typical ranges, as a rule of thumb
- Small jobs / same-day service: often no deposit, or a small one to hold the appointment.
- Mid-size jobs (a few thousand dollars): commonly 10-30% as a deposit.
- Larger renovations with big material orders (cabinets, windows, custom fabrication): often 30-50%, sometimes tied directly to a specific material order rather than a flat percentage.
These are conventions, not laws — your trade, region and relationship with the client all matter more than a generic number.
Material-heavy vs labour-heavy jobs
A kitchen remodel with $15,000 in cabinets needs a bigger deposit than a $15,000 fencing job that's mostly labour, because the cabinet supplier wants paying before they build. Size your deposit to what you actually need to spend before the job starts, not to a round percentage that feels good.
Use progress payments for anything beyond a deposit
On longer jobs, a deposit covers the start — but you shouldn't be financing the whole project out of pocket until the end. Break the remaining balance into milestone or progress payments tied to visible completion. Full details in how to create a construction payment schedule.
Check your local rules before you set a policy
Some provinces and states cap how much deposit a contractor can legally collect up front, particularly for home improvement or renovation contracts, and some require deposits to be held in a specific way. These rules vary by jurisdiction and change over time — check with your provincial/state consumer protection office or a local contractor association before finalizing your deposit policy, rather than relying on general guidance like this article.
Once your deposit policy is set, JobWorks365's invoicing software lets you request the deposit right on the signed quote and automatically tracks the remaining balance as the job progresses.