ECN Electrical Forum - Discussion Forums for Electricians, Inspectors and Related Professionals
ECN Shout Chat
Shout Box
Recent Posts
by HotLine1. 03/20/18 07:33 AM
Recall notice: Southwire wi-fi wall switches
by sparkyinak. 03/15/18 06:03 PM
Goodman Manufacturing Recalls Modular Blowers
by Admin. 03/13/18 10:40 PM
MAAX Spas Recalls Hot Tubs and Swim Spas
by Admin. 03/13/18 10:29 PM
New in the Gallery:
Housebilding DIY wiring
SE cable question
Who's Online Now
0 registered members (), 38 guests, and 10 spiders.
Key: Admin, Global Mod, Mod
Previous Thread
Next Thread
Print Thread
Rate Thread
deposit amounts #157221
09/15/05 10:22 PM
09/15/05 10:22 PM
Joey D  Offline OP
Joined: Oct 2003
Posts: 259
Arlington MA U.S.
Are there laws to limit the amount of a deposit you can receive from a customer?
On a contract job what percentage is a fair amount for a deposit?
I do 50% to start and 25% at rough and the 25% left at final. I have thought this to be fair and it gives me something if a customer decides not to pay.

Business, Office, Estimating, Legal:
Re: deposit amounts #157222
09/15/05 11:02 PM
09/15/05 11:02 PM
Tiger  Offline
Joined: May 2005
Posts: 706
Crystal Lake, IL USA
In electrical work there is usually a lot more work to rough than final. I usually estimate the final and make that the final payment. Depending on the size of the job I may have an advance and rough payment also. On the smaller jobs with an established client I might only have payment on completion.

Basically, the longer the business relationship, the less I ask for in advance. There are no rules that I'm aware of. The contract is an agreement which includes the method of payment.


Re: deposit amounts #157223
09/16/05 05:53 AM
09/16/05 05:53 AM
Pat@Amber  Offline
Joined: Aug 2004
Posts: 106
Gaithersburg, MD USA
I'm pretty sure there are laws limiting the amount of the initial deposit. They most likely vary from state to state. I've never looked for the actual law here in Maryland so this is just hear-say.

I try to do 1/3, 1/3,1/3 to keep the cash flow going. No reason to play banker for everyone else.


Power to the people
Re: deposit amounts #157224
09/16/05 06:00 AM
09/16/05 06:00 AM
Pat@Amber  Offline
Joined: Aug 2004
Posts: 106
Gaithersburg, MD USA
Just found in California the limit is $1,000 or 10% of total, whichever is less! In my county in Maryland, the limit is 33%. I had to Google - (down payment contract contractor Maryland) to find it.

[This message has been edited by Pat@Amber (edited 09-16-2005).]

Power to the people
Re: deposit amounts #157225
09/16/05 03:03 PM
09/16/05 03:03 PM
LK  Offline
Joined: Jan 2003
Posts: 1,429
New Jersey
What is more important then a deposit with the contract, would be your progress schedule of payments, another point to remember is what will the amount of purchased material be, consider a job that has special ordered items, these items may require advance payment, in this situation, the contract wording, may allow a larger down payment.

Contract law, is a field of it's own, and every state has different views on contracts, best to get good legal advice up front, it may help prevent problems, that can lead to considerable losses.

Re: deposit amounts #157226
09/23/05 06:01 PM
09/23/05 06:01 PM
Tesla  Offline
Joined: Jun 2004
Posts: 1,273
Sacramento, CA
California has low limits Home Improvement Contracts (those with the home owning public):

10% or $1,000 whichever is less for electrical.


Re: deposit amounts #157227
12/04/05 10:06 AM
12/04/05 10:06 AM
jr4wire  Offline
Joined: Nov 2005
Posts: 12
MA, Usa
I do:
40% the day I start rough.
30% after completion of rough, not upon rough inspection.
20% the day I start finish.
10% after completion of finish, again not upon final inspection.

Any add ons or extras have to be paid in full before I do anything.

I always get a payment before inspection or I don't call for one, this is the one of the ways to ensure I will get paid. And if all else fails the only thing I lose out on is my profit( 10% ).



2017 Master Electrician Exam Preparation Combos
2017 NEC Electrician
Exam Prep Combos:
Master / Journeyman


Member Spotlight
Posts: 47
Joined: March 2008
Show All Member Profiles 
Top Posters(30 Days)
Trumpy 5
Admin 5
Popular Topics(Views)
244,420 Are you busy
181,531 Re: Forum
171,584 Need opinion
Powered by UBB.threads™ PHP Forum Software 7.6.1
(Release build 20180101)
Page Time: 0.018s Queries: 14 (0.003s) Memory: 0.9846 MB (Peak: 1.1379 MB) Zlib enabled. Server Time: 2018-03-20 19:41:53 UTC