# How Much Can a Contractor Legally Ask for as a Deposit in California? | Valley Home Construction California caps a home improvement deposit at $1,000 or 10% of the contract price, whichever is less. What that means for your bid, from a Sacramento remodeler. Source: https://www.valleyhomeconstruction.com/blog/how-much-deposit-can-a-contractor-ask-california/ Home / Blog / Deposit limits ## How much can a contractor legally ask for as a deposit in California? Valley Home Construction · Sep 15, 2026 a bathroom we priced in writing before we started THE QUICK ANSWER How much can a contractor legally ask for as a deposit in California? California caps a home improvement deposit at $1,000 or 10% of the contract price, whichever is less, and special-order materials don't change that. - On a $30,000 remodel, the legal deposit cap is still $1,000. - Special-order cabinets, tile or fixtures don't raise the cap. - Every later payment follows a written schedule tied to work done. - A change to the price or scope needs a signed change order first. - Ask for a revised schedule before you pay a deposit over the cap. Get my free estimate → Who it's for Sacramento-area homeowners holding a remodel bid that asks for money up front What you get The exact legal limit, in the state's own words, to check any bid against Who's answering Valley Home Construction, in business since 1995 and owned by Ed Lane. CSLB #982830 ## The rule What does California law say about a contractor's deposit? The Contractors State License Board puts the rule in one sentence: "The down payment cannot be more than $1,000 or 10 percent of the contract price, whichever is less, for a home improvement job or swimming pool, excluding finance charges" ( CSLB ). The words that matter are "whichever is less." Here's how that works out on a few contract prices: Contract price 10% of it Legal deposit cap $5,000 $500 $500 $10,000 $1,000 $1,000 $30,000 $3,000 $1,000 Past a $10,000 contract, the cap stays at $1,000 no matter how big the job gets. ## The exception people ask about Can special orders raise the deposit cap? No. The CSLB says it plainly: "There are no exceptions for special-order materials." A custom range hood, imported tile or made-to-order cabinets don't give a contractor a legal reason to ask for more up front. materials going in, on our own jobs ★★★★★ "Ed Lane and his team displayed exceptional professionalism and craftsmanship... The team is incredibly skilled, friendly, and communicative, making the whole process smooth and stress-free." James Google review Get your free estimate → ## The rest of the money What can a contractor collect after the deposit? Everything after the deposit runs on the payment schedule written into the contract. The CSLB sets three rules for it: - the contract has to include a detailed, written payment schedule, - payments can't exceed the value of the work performed, apart from the deposit, and - you should pay only as work is completed, not before ( CSLB checklist ). Any contract you sign with us has to follow those rules too, and you get a written estimate before any work starts. ## Changes What happens to the price if the scope changes? A change to the price or the scope has to be written up as a change order, signed by you and the contractor before the change is made, and it becomes part of the contract ( CSLB ). A contractor who adds to the bill without one is skipping a step the law requires. ## What to do What if a contractor already asked for more than the cap? Don't pay it as asked. Three steps: - Point to the CSLB rule and ask for a revised payment schedule that follows it. - Look up the contractor's license for free at cslb.ca.gov . - If the contractor won't adjust the deposit, get a second bid before you sign anything. A contractor who fixes the schedule without a fight is showing good faith. One who insists on the higher number has told you something worth knowing before you sign. ★★★★★ "I especially appreciated the daily communication & updates as the project progressed." Anna Marie Google review Get your free estimate → KEY TAKEAWAYS ## What to know before you pay a deposit - The deposit can't be more than $1,000 or 10% of the contract price, whichever is less. - Special-order materials are not an exception to that cap. - Payments after the deposit follow a written schedule and can't run ahead of the work. - Any change to the price or scope needs a written change order signed before it happens. - If a bid asks for more, ask for a schedule that follows the law before you pay. QUESTIONS ## Questions people ask about contractor deposits **What is the maximum deposit a contractor can ask for in California? +** The lesser of $1,000 or 10 percent of the contract price, excluding finance charges ( CSLB ). It applies to every home improvement job and swimming pool contract. **Does the deposit rule have exceptions for special-order materials? +** No. The CSLB states there are no exceptions for special-order materials, so custom-ordered cabinets or fixtures don't allow a bigger deposit. **Can a contractor ask for more money after the deposit? +** Yes, on the written payment schedule in the contract. The CSLB says payments can't exceed the value of the work performed, apart from the down payment. **What happens to the price if we change the scope mid-job? +** California requires a written change order, signed by you and the contractor before the change, and it becomes part of the contract ( CSLB ). **What do I do if a contractor already asked for more than the legal deposit? +** Don't pay it as asked. Point to the CSLB rule and ask for a revised payment schedule. If the contractor won't adjust it, get a second bid before you sign anything. 1,000+ Sacramento projects completed Get your free estimate → ★★★★★ 4.9 on Google **## How we verified this page What we checked, what we couldn't, and who read it. Published by Valley Home Construction Checked Sep 24, 2026 2 sources Reported with AI +** ### What this page is for It states the exact California legal limit on a home improvement contractor's deposit, so a homeowner can check a bid against it before paying. ### Who we wrote it for A Sacramento-area homeowner with a remodel bid in hand. It doesn't cover deposits on new home construction, which isn't a home improvement contract. ### Our lens We're Valley Home Construction, a licensed Sacramento general contractor. We make money when a homeowner hires us, so we have a reason to want homeowners comparing bids against the law, since the same law binds us. We quoted the state's words so you can check them yourself. ### Key facts Fact Detail Source, checked Deposit cap The lesser of $1,000 or 10% of the contract price, excluding finance charges CSLB , Sep 24, 2026 Special-order materials No exception; the cap still applies CSLB , Sep 24, 2026 Later payments A detailed written schedule; payments can't exceed the value of work performed CSLB , Sep 24, 2026 Changes A written change order, signed by both sides before the change CSLB , Sep 24, 2026 Valley Home Construction's license CSLB #982830, general building contractor CSLB license lookup , Sep 16, 2026 In business since 1995, in the Sacramento area Valley Home Construction's website, which has said 1995 since at least 2012 ### How we researched it We opened the CSLB's consumer pages on home improvement contracts on Sep 15, 2026 and again on Sep 24, 2026, and quoted the deposit rule in the Board's exact words. ### What we couldn't verify Ed Lane hasn't reviewed this page yet; claims that needed his confirmation were removed. A typical dollar amount for an out-of-line deposit request in Sacramento; no reliable source states one. We also removed an earlier line saying the same rule covers residential solar and ADU contracts, because we couldn't find it on the CSLB pages we checked. ### Decisions we made - We quoted the CSLB's own words instead of paraphrasing a number that could drift from the source. - We worked the rule through a few contract prices in a table, since the 'whichever is less' part is where people get it wrong. - We didn't state a deposit amount of our own, because this page is about the legal rule. ### Who wrote it Reported with AI. Every claim checked against its source. Published by Valley Home Construction. Ed Lane hasn't reviewed this page yet; claims that needed his confirmation were removed. ### Dates - Published Sep 15, 2026 - Last checked Sep 24, 2026 - Check again by Mar 15, 2027 ### Changes and corrections - Oct 2, 2026: we traced every line about how we work, and every quote from Ed Lane, back to its source, and corrected the source for our founding year. - Sep 24, 2026: Ed Lane hasn't reviewed this page yet; claims that needed his confirmation were removed. - Sep 24, 2026: new page layout. We re-checked the rule at the source and now cite the CSLB page that carries the exact quote. We removed the solar and ADU line we couldn't verify, and the Ed Lane attributions that weren't in our interview notes. ### Sources - CSLB, home improvement contract requirements and the deposit rule , checked Sep 24, 2026. - CSLB, homeowner checklists , checked Sep 24, 2026. ### Planning a remodel in Sacramento? Know what you'll pay before work starts. We give you a written estimate, and design is included. Get your free estimate → or call (916) 375-8800 ★★★★★ 4.9 on Google SINCE 1995 CSLB #982830 BBB A+ 1,000+ PROJECTS On this page Who's answering Read next - The quick answer - The legal cap - Special-order materials - Payments after the deposit - When the scope changes - If a bid asks for more - Key takeaways - Questions people ask Valley Home Construction Sacramento remodeler, owned by Ed Lane We design, price and build kitchens, bathrooms, additions and whole-home remodels across the greater Sacramento area. In business since 1995, CSLB #982830. 1995 in business since 1,000+ Sacramento projects 4.9 ★ on Google reviews More about how we work → How do you plan a home remodel in Sacramento? How do I choose a general contractor? What's the difference between a licensed contractor and a handyman in California? See every article → FREE IN-HOME CONSULTATION · DESIGN INCLUDED ## Want a licensed crew and a clear price before work starts? One call gets you a free in-home consultation, a written estimate and a start date. If the job changes, you'll see the new price in writing before we do the work. Get your free estimate → Call (916) 375-8800 SINCE 1995 1,000+ SACRAMENTO PROJECTS CSLB #982830 BBB A+ 4.9 ★ ON GOOGLE