On a small job, one invoice at the end is fine. On a big one, waiting until the end to get paid means you are buying all the materials and paying your crew for weeks before a cent comes back. Deposits and progress payments fix that — you get paid as the job moves, not months later.
The deposit: getting the job moving
A deposit does two jobs: it covers your initial outlay (materials, ordering, booking in the work) and it commits the customer. Someone who has paid a deposit is far less likely to go cold or cancel on you.
- Standard range: around 10–30% for most residential work.
- Material-heavy jobs: tie the deposit to the actual cost of materials you need to order up front, so you are not out of pocket.
- Always in writing: state the deposit amount and that work starts once it is received, right on the quote.
Progress payments: getting paid as you go
For anything longer than a few days, split the job into billable stages. Each stage is tied to something the customer can see is finished, so there is no argument about whether it is payable.
A simple, fair structure
- Deposit — on acceptance, before you start.
- Progress claim(s) — at clear milestones (e.g. rough-in done, materials on site, fit-off complete).
- Final payment — on completion, once the customer has signed off.
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Build a clear quote that spells out the deposit and each progress payment up front — so the customer agrees to the payment schedule before you lift a tool. No signup.
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The whole thing only works if the customer agrees to it before the job — in the quote they accept. Spring a progress claim on someone who thought they were paying at the end and you have a fight on your hands. Put the deposit and every stage in the quote, get it accepted, and everyone knows the plan.
- List each payment, what it is for, and roughly when it falls due.
- Make each stage tied to visible progress, not a calendar date, so it is obviously fair.
- Invoice each stage as you hit it — do not let claims bank up.
If a progress payment is late
The advantage of staged payments is leverage: you can pause work at a milestone until the claim is paid, rather than discovering at the very end that you are owed the lot. A prompt, professional reminder the moment a claim goes overdue keeps the job — and your cash flow — on track.
Frequently asked questions
For most residential jobs a deposit of around 10–30% is normal and reasonable — enough to cover initial materials and secure the booking without asking the customer to pay for work not yet done. For jobs with big upfront material orders, tie the deposit to the actual material cost. Note that some states cap deposits for domestic building work, so check your local building authority rules for larger contracts.
Use progress payments on any job that runs longer than a few days or has significant material costs — renovations, fit-outs, multi-stage installs. Splitting the job into billable milestones means you are paid as you go and never carry weeks of labour and materials on your own cash.
A common structure is a deposit up front, one or more progress claims at clear milestones (for example, rough-in complete, fit-off complete), and a final payment on completion. Tie each stage to something the customer can see is done, so there is no argument about whether it is payable.
Yes — they are standard practice. For domestic building work, some states regulate maximum deposits and require written contracts above certain values, so check the rules with your state building authority for larger jobs. For everyday trade work, a clearly agreed deposit and staged schedule in your quote is fine.
Quote it, stage it, get paid for it
Admin Substitute builds quotes with deposits and progress payments baked in, then invoices each stage and chases anything overdue automatically — so the money keeps pace with the work.
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