The deposit policy that protects a remodeler

You order cabinets. The homeowner backs out. Now you're stuck holding materials and no payment. A clear deposit policy stops that mess.

Why a deposit isn't optional on remodel work

Small repair jobs can often skip a deposit. Remodels can't. You buy materials weeks ahead. You block off your crew's calendar. Sometimes you turn away other work to hold the slot. If the customer walks, you lose the money.

A deposit does two things. It covers your upfront costs. And it tells you the customer is serious before you commit your schedule.

How much to ask for

There's no single right number. Most Wisconsin remodelers land somewhere between 10% and 33% of the total job. A few starting points:

• Small projects (a bathroom refresh, a deck): 20-25% deposit
• Larger remodels with custom materials (kitchens, additions): 30-33% deposit, sometimes with a second payment at the halfway mark
• Jobs with expensive special-order items (cabinets, windows): match the deposit to what you have to pay the supplier upfront

If a supplier wants half down on a $12,000 cabinet order, your deposit needs to cover that number. It's not just about what feels fair.

What Wisconsin actually allows

Wisconsin doesn't set a deposit cap by law, the way some states do. But your contract still needs to state the amount. It needs to say when it's due and what it covers. Vague deposit words are a common problem. They're one of the first things a judge looks at when a contract gets challenged.

This is a spot where it pays to have someone, or something, read your contract. Don't just assume the old template still holds up. Some tools can scan your contract and flag missing terms. Our guide on using AI to read contracts and paperwork covers a few. They can catch a thin deposit clause before it costs you money.

The sentence that belongs in every contract

Put this kind of language directly in the signed agreement. Don't rely on a verbal understanding:

"A deposit of [amount or percentage] is due upon signing and is non-refundable once materials have been ordered on the customer's behalf."

That second half matters most. It draws a clear line. Before you order materials, there's room to give a refund. After that point, you've spent real money. The deposit protects it.

When to collect it

Collect the deposit before you order a single item. A signed contract with no deposit is just a promise. Some remodelers get burned because they start work "to be nice" while waiting on the check to clear. Don't do that. Order materials and schedule crews only after the deposit is in hand.

What to do when a customer pushes back

Some customers will ask why you need money upfront at all. A simple, honest answer works best: "I have to buy materials before I show up. This protects both of us if plans change." Most people accept that once you explain it.

If someone refuses any deposit on a remodel-sized job, pay attention. That's often a sign they'll push hard to negotiate later too.

Progress payments for bigger jobs

For anything running more than a few weeks, break the total into stages. Don't use just one deposit and one final payment. A common structure:

1. 01Deposit at signing, before materials are ordered
2. 02A payment at the halfway point, tied to a specific milestone like "framing complete"
3. 03Final payment on completion, before you hand over keys or sign off

Tie payments to milestones, not dates. That keeps both sides honest about progress.

Put the whole payment schedule in writing

Don't leave any of this to memory or a text thread. Every dollar amount, every due date, and every milestone goes in the signed contract. Disputes come up, even with good customers. A clear written schedule protects you when they do.

Ask for more from a first-time customer

It's fair to ask for a higher deposit from a new customer. You can also ask for the full material cost upfront. Loosen those terms once trust builds over a couple of jobs. Not every customer needs the same terms.

Keep a written record of what the deposit covers

When you collect a deposit, write down which materials or work it's tied to. A dispute about what was paid, and when, can come up months later. A short note ("deposit covers cabinet order placed [date]") settles the question fast. It beats a he-said, she-said fight.