For homeowners and clients
How Much Deposit Should a Builder Ask For, and How to Pay Safely
Sviatoslav JerdetchiiCEO & Founder of Craftex. Updated , 5 min read
The short answer
There is no fixed figure for how much deposit a builder should ask for. The right deposit depends on the project, the programme and what must be bought before work starts, so judge what it pays for, not the percentage.
- A deposit should pay for real commitments: bespoke items, long-lead materials and securing the start.
- A large deposit can be fair when it is tied to ordered materials and protected.
- Ask for proof of order, and pay the company, never cash.
- After a deposit tied to materials and the programme, make stage payments against work done.
You have a quote you like, and then the payment schedule arrives. The builder wants a large sum before anyone lifts a tool. Is that normal, or a warning sign? How much deposit should a builder ask for?
The honest answer is that there is no fixed figure. Speaking as a London builder, we take large deposits ourselves on some jobs. This guide explains when that is fair, when it isn't, and how to protect your money either way.
Want a builder who explains what each payment is for? Book a site visit.
How much deposit a builder should ask for
There is no official percentage in the UK. Anyone who gives you one percentage hasn't seen your job. The right deposit is whatever your job has to buy before work starts.
What decides a fair deposit is what it pays for. Three things drive it:
- The project. A redecoration needs little up front. A new kitchen, steel frame or glazed extension needs a lot.
- The programme. If the builder must book trades and plant weeks ahead, they commit money early.
- Materials bought up front. Bespoke windows, kitchens, steel and long-lead items are usually paid for before they are made.
On bigger jobs, a larger deposit is often the honest answer. The builder may be paying for most of the materials for your job before starting on site.
What a deposit is really for
A deposit pays for the builder's commitments to your job before work starts. It should not fund their other jobs.
- Bespoke and made-to-order items. Windows, doors, joinery, kitchens and stone are usually paid for before they are made.
- Long-lead materials. Steel, specialist glazing and some services equipment may need ordering well in advance.
- Securing the start. Booking labour, scaffolding and plant for a fixed start date.
- Design and surveys. Where the builder carries out design or surveys before the build.
Here is the insider view. Small builders often run tight on cash. A deposit that is much bigger than the job's real up-front costs can be a sign the firm needs money to keep going. That is a cash-flow signal, not proof of a scam. But it moves the risk of the firm failing onto you.
When a bigger deposit is fair
A big deposit is fair when you can see what it buys, and when it is protected. Use this table to judge the one you have been offered.
| Fair | Warning sign |
|---|---|
| Linked to named items on the quote | A round number with no breakdown |
| Order confirmations or supplier invoices shown to you | "We need it to get started" and nothing more |
| Written into a signed contract with a payment schedule | Agreed by text or on the doorstep |
| Paid to the company's bank account against an invoice | Asked for in cash |
| The builder explains what happens to it if the job is cancelled | No answer on refunds or cancellation |
Stage payments and monthly valuations
After the deposit, every later payment should follow the work. There are two common ways to do it.
- Stage payments. You pay when a defined stage is finished, such as foundations, roof on or first fix. Best for smaller and residential jobs.
- Monthly valuations. Each month the work done and materials on site are valued and paid. Common on larger and commercial jobs.
Either way, define each stage in the contract so you can check it is done. A council trading standards page puts it simply: agree staged payments for large works, following completion of each phase.
A safe payment schedule
We don't set percentages here, because the right split depends on your job. What matters is that each payment is tied to something you can check.
| Payment | What it pays for | What to see before you pay |
|---|---|---|
| Deposit | Up-front materials, bespoke items, securing the start | Signed contract, itemised list, order confirmations |
| Stage or monthly payments | Work completed and materials delivered | The finished stage on site, or a valuation |
| Practical completion | The finished job | Walk-round, snagging list agreed, certificates handed over |
| Final payment | Snags fixed | Snagging list signed off |
The pattern is simple: a deposit tied to materials and the programme, then stage payments against work done. If a stage isn't finished, its payment waits.
Paying for materials: ask for proof of order
When a deposit is mainly for materials, ask to see the proof. A good builder won't mind.
- Ask for the supplier's order confirmation or pro-forma invoice for the big items.
- Check the delivery date fits the programme.
- Ask who owns the materials once paid for. Your contract can say they become yours on payment.
- Ask where they will be stored if they arrive before they are needed, and who insures them.
Ownership matters if a firm fails. Materials you paid for are not always treated as yours without clear terms.
How to protect your deposit
Even a fair deposit is money at risk. Construction has more company insolvencies than any other industry, 3,866 in the year to August 2026. If a firm fails, unsecured creditors are paid only after the insolvency costs, secured creditors and preferential creditors (such as some employee and tax debts).
If the worst happens, our guide on what to do when a builder walks off the job or goes bust sets out the steps. Our guides to construction contractors and to house renovation in London cover what to check before you hire.
Commercial projects: payment terms and retention
On commercial jobs, the Construction Act sets the payment rules. The payer must issue a payment notice within 5 days of each due date. To pay less than the notified sum, it must serve a pay less notice before the final date for payment. Our guide to the construction adjudication process explains what happens when payments are disputed.
Up-front payments on larger jobs are often protected by an advance payment bond. Many commercial contracts also hold back part of each payment as retention. Our guide to retention in construction explains how it works and the proposed ban.
A deposit is a matter of trust, but it shouldn't rely on trust alone. Planning a project and want payment terms set out before you sign? Book a site visit.
Before you pay a deposit
- A signed written contract with the scope, price, programme and payment schedule.
- An invoice in the company's name, paid to the company's bank account.
- No cash. Council trading standards warn against anyone asking for large cash deposits.
- Part paid by credit card where Section 75 can apply: items over £100 and up to £30,000.
- Order confirmations for the materials the deposit pays for.
- A clause on who owns paid-for materials, and what happens to the deposit if the job is cancelled.
- Insurance-backed deposit protection, if the builder offers it.
- A check of the company's status and filings on Companies House.
