Should Plumbers Take Deposits? (When and How Much)
Quick Answer: Yes — for jobs over $1,000, take a 10-20% deposit to cover materials. For smaller jobs, invoice on completion. In QLD, deposits over 10% for residential building work require a written contract.
When to Take a Deposit
| Job Value | Deposit? | Amount |
|---|---|---|
| Under $500 | No | Invoice on completion |
| $500-$2,000 | Optional | 10% or materials cost |
| $2,000-$10,000 | Yes | 10-20% |
| Over $10,000 | Yes + progress payments | 10% deposit + milestone invoices |
How to Ask (Without Being Awkward)
Frame it around materials: "I'll need to order the [hot water system/fixtures/materials] — I take a 10% deposit to cover the materials order, then the balance on completion. Does that work for you?"
This is completely normal and expected for larger jobs. If a customer refuses a reasonable deposit, that's a red flag.
QLD Legal Requirements
- For domestic building work over $3,300: you must have a written contract
- Maximum deposit: 10% of contract price (for contracts under $20,000)
- You cannot demand full payment before work is complete
- Progress payments must be tied to completed stages of work
TradeDesk lets you send deposit invoices and track partial payments against jobs. Try it free for 21 days.