Should You Pay Builders a Deposit? How Much, and How

Should you pay builders a deposit? Usually yes, but a small one, tied to something you can see, and never the bulk of the job before work starts. A deposit is reasonable when it pays for materials the builder has to order in your name, or secures a start date months ahead. It is a warning sign when it is large, demanded in cash, or asked for before you have a written quote and contract.

No UK law sets a maximum deposit for home building work, so the protection comes from how you structure the payments. This page sets out what is normal, how to pay so you keep your rights, and what to do if a builder takes the money and does not turn up. It is written for homeowners in Kent, but the rules apply across England.

Table of Contents

How much deposit is normal for a builder?

There is no official figure. In practice, builders’ approaches fall into three groups:

No deposit: established firms on smaller jobs often ask for nothing up front and invoice at stages or on completion.
A small booking deposit: often around 10% of the price, to hold a slot in the diary.
A materials deposit: on jobs with expensive made-to-order items (bifold doors, a kitchen, roof lights, a staircase), a builder may ask you to pay for those items before ordering them.

A request for half or more of the total before anything happens on site is where homeowners get hurt. If the builder cannot fund the first week of labour and materials, that tells you something about the business.

Paying for materials: the safer way

If a large share of the upfront money is for materials, you have options that protect you better than handing over cash:

Pay the supplier directly, with the order in your name and delivery to your address.
Ask for the supplier’s invoice or order confirmation before you pay the builder for those items.
For made-to-measure items, get the specification in writing first, because made-to-order goods may not come with a cooling-off period.

How to structure payments on a building job

The principle that protects you is simple: at any point in the job, you should not have paid for more than has been done and delivered. A stage payment schedule written into the contract does this. A typical extension might look like this:

Deposit or materials payment on signing, kept small.
Foundations and slab complete, after building control has inspected them.
Walls to roof level.
Roof on and watertight.
First fix (electrics and plumbing run, before plastering).
Second fix and finishes.
Retention held back until snagging is complete.

Tie each stage to something you can check, not to a date. “Week four” can pass with nothing built; “roof felted and tiled” cannot. If a stage needs a building control inspection, pay after it passes. Our page on comparing builders’ quotes covers the lines a quote should include so these stages can be written in from the start.

Keep a retention

Holding back a small percentage of the final payment until the snagging list is cleared gives the builder a reason to come back for the last small jobs. Agree the amount and the release date in the contract so it does not look like you are withholding money unfairly. For more on that last stage, see when to pay a builder’s final payment.

Pay by credit card if you can

How you pay matters more than how much. Under Section 75 of the Consumer Credit Act, if you pay at least part of the cost on a credit card and the item or service costs over £100 and up to £30,000, the card provider is jointly liable with the trader. Citizens Advice notes that the limits apply per item, and that you can claim the full cost even if only part of it went on the card.

That makes a credit card ideal for a deposit: put the deposit on the card, and if the builder disappears with it, you can claim from the card company. Check the job is paid directly to the business on your card, because Section 75 usually does not apply if you pay through a third party.

Debit card payments do not get Section 75, but you can ask your bank for a chargeback. Bank transfers have the least protection of all, and cash has none. If a builder insists on cash for the deposit, or offers a discount for it, that is a reason to walk away.

Your cooling-off rights on a deposit

If you sign a contract with a builder in your own home, you normally get a 14-day cooling-off period. According to Citizens Advice:

If you cancel within 14 days and the work has not started, you can get all your money back, deposit included.
If you asked the builder to start during the cooling-off period, you may have to pay for the work done so far.
If the builder did not give you cancellation information, the cooling-off period is extended by 14 days from when you receive it, up to a maximum of a year.
Made-to-measure items and urgent repairs you called the trader in for may not come with a cooling-off period.

This is one more reason to keep the deposit small and the start date after the 14 days, unless the job is genuinely urgent.

Checks before you pay anything

Written quote and contract with the full price, the payment stages, the start and finish dates, and what happens if either side cancels.
A real business address and a landline or company details you can check. A mobile number and a first name are not enough.
Insurance: ask for proof of public liability cover.
References you can visit, ideally a job finished in the last year.
A vetted scheme: Kent County Council runs Trading Standards Checked, a list of traders who have been checked by Trading Standards. A trader being on it is not a guarantee, but it means someone has looked.
Bank details in the business’s name, matching the name on the contract. Be wary of last-minute changes to bank details sent by text or email, and confirm them by phone on a number you already have.

What if the builder takes the deposit and does not start?

Put it in writing. Email or write giving a firm start date, and say you will treat the contract as ended if they miss it.
Claim from your card provider if you paid by credit or debit card: Section 75 or chargeback.
Get advice from Citizens Advice, which can refer the case to Trading Standards.
Consider the small claims track if the sum is worth recovering and the business still exists.
Report fraud if the trader has vanished or was never a real business.

Keep every message, invoice and receipt from the start. They are what a card company, Trading Standards or a court will ask for.

Frequently asked questions

Is it normal for a builder to ask for a deposit?

Yes. Plenty of honest builders ask for a deposit, particularly to cover materials or to book a start date. The questions are how big it is, what it pays for, and how you pay it.

Is 50% upfront too much for a builder?

For most jobs, yes. Half the price before work starts leaves you with little leverage if things go wrong. Offer a smaller deposit plus stage payments, or pay suppliers directly for expensive materials.

Should I pay a builder in cash?

Avoid it. Cash leaves no record and has no protection if the builder does not turn up. A credit card gives you Section 75 protection on payments over £100 and up to £30,000.

Is there a legal limit on builders’ deposits in the UK?

No. There is no statutory cap on deposits for home building work in England. Your protection comes from the contract, the payment method and consumer law.

Can I get my deposit back if I change my mind?

If you signed at home and cancel within the 14-day cooling-off period before work starts, you are normally entitled to a full refund. After that, it depends on the contract terms and what the builder has already spent on your job.

What should a builder’s contract say about payments?

The total price, the deposit, each stage payment and what triggers it, any retention and when it is released, and what happens to money already paid if either side cancels.

For more on planning and paying for work on your home, see the rest of Contemporary Structures.

Should You Pay Builders a Deposit? How Much, and How

How much deposit is normal for a builder?

Paying for materials: the safer way

How to structure payments on a building job

Keep a retention

Pay by credit card if you can

Your cooling-off rights on a deposit

Checks before you pay anything

What if the builder takes the deposit and does not start?

Frequently asked questions

Is it normal for a builder to ask for a deposit?

Is 50% upfront too much for a builder?

Should I pay a builder in cash?

Is there a legal limit on builders’ deposits in the UK?

Can I get my deposit back if I change my mind?

What should a builder’s contract say about payments?

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