They Asked for 50% or 60% Upfront. Is That Normal?

"We need 50% upfront." "We need 60% to cover materials."

Lines like these come up again and again in bad reviews. In one case, the family paid, the backyard was torn up, and no new fence or wall ever arrived.

It depends on the job, but there are rules

Every job is different, so deposits vary. But licensed contractors in Queensland don't get to pick any number they like. We're governed by the QBCC, and the law sets a maximum deposit for regulated domestic building work:

• Contracts under $20,000: up to 10%
• Contracts of $20,000 or more: up to 5%
• Where more than half the work is custom made or fabricated off site: up to 20%

You can check the details yourself on the QBCC website.

Why some ask for much more

Operators who aren't QBCC licensed aren't held to the same standards, and they're often the ones asking for big upfront payments. If something goes wrong, there's far less accountability. Always check a contractor's licence on the QBCC website before you pay anything.

Pay in stages, not all at once

Think about how a large building goes up. It's paid for in stages, and an inspector checks the work at each stage before the next payment is made.

A fence or retaining wall can work the same way. Never release a large amount of money until you can see why you're paying it.

• Look at the work at each stage before you pay the next amount.
• Check that what's been done matches your quote.
• Ask questions if something doesn't look right.

Raise problems early

It's always better to point something out early than to leave it until the end. A problem caught at the post stage is a small fix. The same problem found after the panels or sleepers are on can be a big, expensive one.

And when a fix gets expensive, that's when some contractors try to dodge it and push it back onto you. Checking each stage protects you from that.

How we handle payments

We're QBCC licensed and our deposits stay within the law. We're happy for you to look over the work at every stage, and we'd always rather you raise something early.

Got a quote asking for a big deposit? Call us on 07 2141 7748 for a second opinion.

This article is general information only and not legal advice. Deposit rules can change, so confirm the current position with the QBCC.