Contractor Project Deposit Payment

Should I Collect a Down Payment?

Today, I want to talk to you about project payment terms. The number one question that I get asked is should I take a project deposit? And the answer to that question is, "Yes, Yes, Yes!" You should get a deposit on every job whether it's a $100, $1,000 or $10,000 job. You should definitely get a deposit on any job. The amount of the deposit is going to be somewhat dependent on a few different factors here. Anywhere from 10% to 50% down.  A lot of times you're going to be purchasing the materials upfront. A very common amount to take down would be a 10% deposit if the project is going to run longer than 30 days. If the first day of that job is longer than 30 days out, you might want to consider taking a 10% down payment or deposit. It's important that you don't spend it on anything except items related to that project. You should have an account at your bank strictly for deposits. Until that job starts to run, that money is not an asset....

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