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Writer's pictureJerry Ipsen, CFE, MBA

Never Prepay More than 10% of the Total Job Value

By law, each state has different regulations regarding the amount a contractor can ask when it comes to an upfront deposit. The range is usually from 10% to 30%. In many cases, a 10% deposit is more than enough to show that you're serious about the project while still protecting yourself.


In some instances, a larger deposit may be required, such as when special ordered materials need to be purchased. Be sure to check your state's laws to see where and when this is legal.


Let me help you or someone you know from becoming a victim of contractor fraud. If you have your suspicions and have a question, I offer a free consultation and am happy to talk with you. Just email and we’ll set up a time to speak.




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