Is It Normal for Contractors to Ask for a 30% Upfront Payment?
I’m about to start a small home renovation (kitchen + some wall modifications), and the contractor I’m talking to is asking for 30% upfront before starting the work. I understand materials need to be ordered and labor scheduled, but I just want to make sure this is standard practice.
This is my first time dealing with a construction project, so I’m trying to be careful. The contract looks fine overall, timeline is around 6–8 weeks, and payments are divided into stages after the deposit.
For those who’ve done renovations before is 30% reasonable? Or should I negotiate it lower? Also, do you usually tie payments to milestones like framing complete, rough-ins done, etc.?
Just want to avoid any rookie mistakes. Appreciate any advice.
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30% upfront isn’t unusual, especially for a renovation project where the contractor needs to secure materials and schedule labor before work starts. A lot of contractors ask for a deposit in that range so they can cover initial costs like ordering cabinets, drywall, fixtures, or other custom items. What matters more is how the rest of the payments are structured.
In most cases, it’s a good idea to tie the remaining payments to clear milestones in the project. Things like completion of framing, rough-ins, drywall, or finishing stages make it easier for both sides to track progress and keep everything fair. That way you’re not paying too much before work is actually completed.
Since it’s your first renovation, just make sure everything is written clearly in the contract, including timeline, payment schedule, and scope of work. From what you described though, it doesn’t sound out of the ordinary. I’ve seen many builders structure projects this way, and in larger projects a construction estimating company is often involved early on to help plan budgets and cost breakdowns before work even begins.
Overall, as long as the contractor has good references and the contract is detailed, a 30% deposit is pretty common for renovation work.