Building Deposits Explained: What to Pay and When
A deposit commits both sides to the job. A fair one is proportionate, written into the quote and paid to the business doing the work.
The short version
A deposit is a part-payment that commits both sides to the job. A fair one is proportionate, written down and paid to the business doing the work.
Asking for a deposit is normal practice on domestic building work. It secures your place in the contractor's schedule and helps cover materials ordered specifically for your job. In return, you should know exactly how much it is, what it is for, who you are paying and what happens next.
There is no single deposit that suits every job. A small repair and a project with made-to-order materials justify different amounts. What matters is that the deposit is proportionate to the job, set out in writing before you pay, and paid by a traceable method to the business named on your quote.
This guide explains what deposits are for, what a reasonable request looks like, and what to check before and after you pay. It is part of our homeowner's guide to building quotes and payments.
The purpose
What a deposit is for
Securing the booking. A contractor who commits to your start date turns other work away for that period. A deposit shows you are committed too, and it gives the contractor a reason to hold the slot.
Materials for your job. Some materials have to be ordered in advance, and some are made to measure. A contractor may reasonably want the cost of those covered before they order items that can't be used elsewhere.
A shared commitment. Once a deposit has been paid and accepted against a written quote, both sides have a clear record that the job has been agreed, on what terms and at what price.
A deposit is not payment for work done. It is paid before anything happens on site, which is why it should be proportionate. Payment for the work itself follows once the work is done, either at completion or in stages on a longer job. Our guide to staged payments covers how that works on larger projects.
If you are wondering whether a deposit is normal at all, our answer on whether it is normal to pay a deposit covers it briefly.
How much
What a reasonable deposit looks like
There isn't a single legal figure for a deposit on building work. What is reasonable depends on the size of the job, how long it will take and how much of the cost is materials that have to be bought in advance.
A useful test is to ask what the deposit covers. If the answer is "it secures your date and pays for the materials we're ordering for you", the figure should make sense against that. If the request is for most of the price before any work has started, it is reasonable to ask why, and to consider whether a smaller deposit with the rest paid later would suit you better.
A bigger deposit isn't automatically a warning sign. A job built around made-to-measure products can justify more at the start than a job using standard materials. The point is that it should be explained, and the explanation should fit the job. Our answer on how much deposit a builder should ask for goes into more detail.
Whatever the figure, it should be on the written quote, along with when the rest of the price is due. Our guide to payment schedules explains how the payments on a job fit together.
Before you pay
Six things to check before paying a deposit
All of these should be answerable from the written quote, or from a short message to the contractor.
The amount is in writing
The deposit figure, or how it is calculated, should be stated on the quote, with the payment terms for the rest of the price.
Who you are paying
The payee should match the business on the quote. If the name is different, ask why before you pay. There is often a simple explanation, but you should know it.
How you are paying
Pay by a traceable method, such as bank transfer or debit card, and avoid cash. It gives you a clear record of what you paid, when and to whom.
What it covers
Know whether it secures the date, pays for materials, or both. It helps you judge whether the amount is proportionate.
When work starts
A deposit usually secures a start date. Ask when that is expected to be, and how you'll be kept informed if it moves.
What happens if plans change
Ask what happens to the deposit if the job is cancelled or postponed, by either side, and how any materials already ordered are treated.
Depending on how and where the contract was agreed, for example at your home or at a distance, consumer law may give you a right to cancel within a set period, and that affects what happens to any payment you have made. If you ask for work to start during that period, you may have to pay for work already done. Citizens Advice explains when the right applies and how it works. This is general information, not legal advice.
Paying it well
How to pay a deposit sensibly
A few simple habits make the deposit easy to account for from start to finish.
Accept the quote in writing first
Reply to confirm you accept the quote, its price and its payment terms. The deposit then sits against a clear agreement. Our guide on what to do before accepting a quote covers the checks worth making.
Check the payment details
Confirm the account details with the business directly, using contact details you already have, especially if they arrive by email. Payment details changing unexpectedly is worth a phone call.
Pay by a traceable method
Bank transfer or debit card. Our answer on whether you should pay a builder in cash explains why cash is best avoided.
Get a receipt
Ask for written confirmation that the deposit has been received, showing the amount and the job it relates to.
Keep everything together
The quote, your acceptance, the payment record and the receipt belong in one place. Our guide to invoices and receipts explains what to keep and for how long it is useful.
Reading the request
Deposit requests: what is normal and what to ask about
None of the right-hand points proves a problem. Each is a reason to ask a question before you pay.
Normal and reasonable
- A deposit stated on the written quote
- Proportionate to the job and its materials
- Paid to the business named on the quote
- Paid by bank transfer or debit card
- A receipt provided
- A start date agreed or indicated
Worth asking about
- A deposit requested before any written quote
- Most of the price asked for up front
- Cash only
- A payee that doesn't match the quote
- Pressure to pay today to keep a price
- No indication of when work will start
Both sides of it
Why contractors ask for deposits, and what you can ask in return
From the contractor's side, a deposit solves a real problem. They may be booking their time weeks ahead, turning down other work to keep your slot free and ordering materials in their own name. A customer who cancels late, with nothing paid, can leave a gap in their diary and materials they can't use. A proportionate deposit is a fair answer to that.
From your side, the deposit is money paid before you have seen any work. It is reasonable to want something in return: a written quote that describes the work, a clear statement of the payment terms, an indication of when the job will start, and prompt communication if anything changes.
That balance is what makes a deposit fair. Neither side is taking an unreasonable risk, and both have a written record of what was agreed.
If the date moves
Keeping the job on track after the deposit is paid
Start dates on building work can move for ordinary reasons: weather, an earlier job running over or materials taking longer to arrive. A moved date on its own isn't a cause for concern. What you can reasonably expect is to be told promptly, to be given a reason and to be offered a revised date.
If the date moves more than once without a clear explanation, ask in writing for a firm start date and keep the reply. A calm, written question usually gets a clear answer, and it gives you a record if you need one later.
If you are the one who needs to change the date, raise it as early as you can. The earlier a contractor knows, the easier it is for them to rearrange their schedule, and the less likely it is that the change will cost you anything.
After you pay
What happens to your deposit next
A deposit is part of the price, not an addition to it. It should be deducted from what you pay later, and your final invoice should show the full price, the deposit already paid and the balance due.
On a job paid as a deposit and a balance on completion, the next payment is the balance once the work is finished. On longer jobs paid in stages, the deposit is followed by payments at agreed points. Either way, the payments should add up to the agreed price plus any changes you have agreed along the way. Our guide to variations and extra costs covers how those changes should be handled.
Before the final payment, check that the work is finished to the standard described and that any small outstanding items have been dealt with. Our guide to final payment and snagging explains how to approach the end of the job fairly.
If the business that coordinates your work is not the business that carries it out, check who the deposit is legally paid to. Our guide to paying an agent vs paying the contractor explains the difference and why it matters.
How Mortaro handles the deposit
A 25% deposit, passed to your contractor promptly
Mortaro coordinates domestic building work, carried out by an independent main contractor from our network and named in your quotation. Nothing is paid before you accept: the site visit and the quotation are free. When you accept, a 25% deposit secures the works and the start date, and the balance is due on completion.
You pay by bank transfer. The deposit is legally paid to your main contractor. We receive it as their payment administration agent and pass it on without unnecessary delay. We do not hold client funds and we are not an escrow service.
Payments explained sets out every step of how the money moves.
Straight answers
Questions about building deposits
Is it normal for a builder to ask for a deposit?
Yes. A deposit is common on domestic building work, to secure the start date and cover materials ordered for your job. What matters is that it is proportionate, written on the quote and paid to the business named on it.
Is there a legal maximum for a building deposit?
There isn't a single legal figure. The amount is agreed between you and the contractor. If a request seems high for the job, ask what it covers and whether a smaller deposit would be possible.
Should I pay a deposit in cash?
It is best avoided. Paying by bank transfer or debit card gives you a clear record of what you paid, when and to whom, which is useful if anything needs sorting out later.
Is the deposit extra, or part of the price?
Part of the price. It should be deducted from the total, and your final invoice should show the deposit already paid and the balance due.
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