How much deposit should you pay a contractor before work starts?

# Contractor Deposits: What's Standard

A typical deposit ranges from 10-50% of the total project cost, with 25-33% being most common for residential work. The specific amount depends on the project type, scope, and the contractor's policies.

General guidelines: - Small projects ($1,000-5,000): Often 50% upfront - Medium projects ($5,000-25,000): Usually 25-33% - Large projects ($25,000+): Typically 10-20%

What to know: The deposit covers materials, labor scheduling, and initial work. Make sure your contract specifies exactly what work will be completed before additional payments are due. Reputable contractors will have a clear payment schedule broken into milestones—not ask for the full amount upfront.

Protect yourself: Never pay more than 50% before work begins, and avoid paying the balance until work is complete and inspected. Get everything in writing, including what triggers each payment. If a contractor demands full payment before starting, that's a red flag.

If you're comparing contractors and need guidance on fair pricing and deposit terms for your specific project, contract.city can help you connect with local professionals and understand typical costs in your area.