Getting paid

Can I ask for a deposit before starting work?

5 min read · Updated 24 June 2026

Yes. You're perfectly entitled to ask a customer for a deposit before starting, and for materials-heavy jobs you probably should. There's no legal cap for trade work, but a deposit needs to be fair, agreed in writing up front, and clearly tied to what it covers — typically materials and securing the booking.

Funding a job out of your own pocket and hoping you get paid at the end is how a lot of tradespeople end up out of pocket. A deposit shifts that risk, and most reasonable customers expect it.

When a deposit makes sense

How much is reasonable?

There's no legal limit for trade work, but common practice is:

Keep deposits proportionate. A deposit far bigger than your costs can look unfair, and for consumer customers an unreasonable non-refundable deposit may not be enforceable. Tie it to something real — usually materials plus securing the slot.

Put it in writing

State the deposit clearly on your quote: the amount, what it covers, when it's due, and whether it's refundable. Getting the customer's written acceptance turns it into part of your contract, so there's no argument later.

Are deposits refundable?

It depends what you've agreed and what's happened. If you've already bought materials or turned down other work, it's fair to keep enough to cover your loss. If the customer cancels before you've spent anything, holding a large non-refundable deposit can be challenged — especially by a consumer. Spell out the position in your terms so everyone knows where they stand.

Quick questions

Is it legal to ask for a deposit for building or trade work?

Yes. There's no law stopping a tradesperson asking for a deposit, and no fixed legal cap for trade work. The deposit should be fair, agreed in writing before work starts, and tied to what it covers, such as materials and securing the booking.

How much deposit should a tradesperson take?

A deposit should at least cover your materials cost so you're not funding stock for the customer. For larger jobs, 25% to 50% is common, and very large jobs are often handled with staged payments against milestones instead of one big deposit.

Do I have to refund a deposit if the customer cancels?

It depends on what you've agreed and what you've already spent. If you've bought materials or turned away other work, it's fair to keep enough to cover your loss. Holding a large non-refundable deposit when you've incurred no cost can be challenged, especially by a consumer.

How do I make a deposit legally binding?

State the deposit amount, what it covers, when it's due and whether it's refundable on your written quote, then get the customer's acceptance in writing. That makes the deposit part of your contract.

Tool Talk gives general guidance to help you run your business — it isn't formal legal, tax or financial advice. For anything serious or specific to your situation, speak to a qualified professional.

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