How much deposit should a builder ask for?

Why builders ask for deposits

A deposit is a payment made before work starts. For a builder, it reduces the risk of ordering materials or turning down other jobs for a customer who then pulls out. For you, it is money paid before you have received anything, so the aim is to make sure the amount matches a genuine need.

There is no fixed legal limit on what a builder can ask for. That means the deposit is something you agree, not something you simply accept. A request is easier to judge once you know what it is meant to pay for.

What a fair deposit usually covers

A reasonable deposit normally has a clear, specific purpose. Common ones include:

• Materials ordered for your job, such as bespoke windows, a kitchen or steelwork that cannot be returned.
• Securing a start date when the builder is booking months ahead.
• Specialist items that the builder has to pay a supplier for in advance.

If a builder can explain what the deposit pays for, and the quote shows it, you have something concrete to compare. If the explanation is vague, ask again before paying.

Warning signs around deposits

Some patterns deserve extra caution:

• A request for a large share of the total before any materials are ordered.
• Pressure to pay today to "hold the price".
• Cash-only payment with no receipt.
• No written quote or contract setting out the deposit and what happens to it.
• The deposit is asked for in a different name from the business on the quote.

None of these proves anything on its own, but together they are a reason to slow down. Our guide to comparing builder quotes shows how to line up the terms side by side.

Paying for materials directly

On larger jobs, some people ask to pay suppliers directly for big-ticket materials rather than handing the money to the builder. This keeps the goods in your name and makes it clear what you have paid for. Not every builder will agree, and it can complicate warranties, so discuss it openly at the quote stage.

Put it in writing

Whatever you agree, write it down before any money changes hands. A simple written agreement should state:

1. The deposit amount and what it covers.
2. When the remaining payments are due, ideally linked to completed stages.
3. What happens to the deposit if either side cancels.
4. The business name, address and contact details.

The Consumer Rights Act 2015 says a trader must carry out a service with reasonable care and skill. Written terms make it much easier to show what was agreed if something goes wrong.

Protecting the money you pay

A few simple habits reduce risk:

• Pay traceably. A bank transfer to a business account or a card payment leaves a record. Cash is hard to prove.
• Consider a credit card for eligible amounts. Section 75 of the Consumer Credit Act can make the card provider jointly responsible for purchases between £100 and £30,000.
• Ask about deposit protection. Some trade schemes and insurance-backed guarantees cover deposits if a firm stops trading. Check the scheme's own terms rather than relying on a logo.
• Keep receipts and messages together in one place.

How the deposit fits the whole payment plan

The deposit is only the first payment. A well-structured job usually ties later payments to visible progress, with a final amount held back until everything is finished and signed off. If the payment plan front-loads most of the cost, you lose leverage if the work stalls.

Next steps

Before you pay a deposit, check the amount against what it covers, make sure it is written into the quote, and pay in a way you can trace. If you are comparing several quotes, Estimo's quote comparison can help you spot differences in payment terms as well as price.

Sources

• Consumer Rights Act 2015 — legislation.gov.uk
• Consumer Credit Act 1974, section 75 — legislation.gov.uk
• Citizens Advice — consumer help