Deposit
A partial up-front payment securing a contractor's work or materials.
Definition
A deposit is money paid in advance to lock in a contractor's schedule and/or cover the cost of materials before work begins.
In plain English
Deposits typically range from 10% to 50% of project value. Some states cap how much a contractor can collect up front — check local rules.
Example
A bathroom remodeler collects a $4,500 deposit (30%) on a $15,000 project to order tile and the new tub.
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