Guides / Protect yourself
Deposits and payment schedules that protect you
How much to pay up front, how to schedule the rest, and what to hold back until the end.
Paying too much too early is the single most common way homeowners lose money on repairs. A good payment schedule keeps the contractor paid for work done, and keeps you with leverage until it's finished.
Deposits
- Keep the deposit modest. Some states cap it by law; California, for example, generally limits home improvement deposits to 10 percent or $1,000, whichever is less.
- For special-order materials, consider paying the supplier directly or ask for the supplier invoice.
- Never pay a large deposit in cash.
A sample schedule for a mid-size job
- Small deposit at signing
- A payment when materials are delivered to the site
- A payment at a clear milestone (for example, rough-in inspection passed)
- The final payment, a meaningful share, after the work is complete, inspected and cleaned up, and you have lien waivers
Keep records
Pay by check or card, write the job and milestone in the memo, and keep a payment log. The free Fair Quote Checklist has a payment tracker page.
General information, not legal, financial or construction advice. Prices and rules vary by state and city. Affordable Home Assistance doesn't take referral fees or payments from any contractor, lender or brand.