How much deposit should you pay a builder?
There is no single deposit percentage that works for every building project. A sensible amount depends on what it secures, when work starts, what needs to be ordered and how the rest of the job will be funded. Money paid six months before work begins serves a different purpose from a pre-start payment for steel, scaffold and early labour.
Ask what the money is for
A booking deposit may reserve a start period. Ask where it is held, when it is released and what happens if either side changes the date or cancels. A mobilisation payment may fund identifiable setup and procurement shortly before work starts. Stage payments should correspond to agreed work or commitments during the build. Do not let one word—“deposit”—hide all three.
If a contractor asks for a large amount far in advance, request a breakdown: which named materials or commitments are needed now, when they will be paid for, who owns them, where they will be stored and what evidence you will receive. If a protection arrangement holds the money, understand its release terms. A protected booking amount held until completion cannot itself fund early mobilisation.
Before paying, check the essentials
Is the builder’s identity the same on the quotation, contract, invoice and bank details?
Have you agreed the scope, drawings, price basis, start window and payment schedule in writing?
What specifically will this payment purchase or secure, and when does it become due?
Are any materials bespoke, non-returnable or already ordered? What proof can be provided?
What happens if the design changes, the start is delayed or the appointment is cancelled?
How much remains unpaid at each stage relative to the work still to be delivered?
Do not judge the request only by a percentage. Ten per cent on a small labour-heavy job may be insufficient for planned procurement; the same percentage on a much larger job may exceed the immediate need. A plausible explanation still needs written terms and evidence.
Build a payment schedule that works for both parties
Builders should not have to finance large pre-start purchases and weeks of labour from their own cash. Homeowners should not be left having paid far ahead of work and materials without safeguards. A workable schedule separates early procurement, site mobilisation, subsequent milestones and the final balance. It states when invoices are issued and how quickly they are payable.
JCT’s Home Owner contract information identifies the price and payment schedule among the matters a domestic contract can record. Citizens Advice offers guidance before building work. Check the rules and contract relevant to your location and circumstances; this article is practical construction guidance, not legal advice.
If the request feels wrong
Pause and ask the builder to explain the purpose, calculation and release conditions in writing. Compare the request with the quoted work and proposed programme. If the builder needs money for materials, discuss a documented procurement arrangement rather than assuming either party should carry unlimited risk.
Our quote checklist and builder checks help with the wider appointment decision. Build Advocate’s Complete Builder Selection reviews the payment structure alongside the builder, scope, contract and programme before you commit.
