Invoices
Create a deposit invoice when a quote is accepted
Payment tracked against the job. Materials ordered only after deposit received.
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Guided operating lesson
Deposits That Protect Your Cash Flow
Understand why deposits are standard professional practice and implement a deposit policy that protects your cash without losing jobs.
Getting Paid18 minFoundation
Who this is for
Tradespeople who start jobs without a deposit and end up financing materials for clients who may not pay.
Why it matters
A deposit is not a sign of distrust — it is a professional standard. It covers your material costs before you have committed them and filters out clients who were never serious.
Lesson outcome
A clear deposit policy you state confidently on every job, with a standard percentage for different job sizes.
Real-world problem
The job where the materials cost more than the deposit he never took
A tiler buys $3,200 of tiles for a bathroom job. No deposit was taken. The day before the start date, the client calls to say they are "putting the project on hold." The tiler now owns $3,200 of custom tiles he cannot use elsewhere and is owed nothing. This is not bad luck — it is a policy gap. A 30% deposit would have covered the material cost entirely.
Why this happens
Asking for a deposit feels presumptuous
Most tradespeople worry that asking for money upfront signals distrust. But clients who have worked with professional contractors expect a deposit — it is a sign of a well-run business, not suspicion.
No policy means negotiation every time
When you do not have a stated deposit policy, you either skip it (and take the risk) or negotiate it awkwardly on each job. A policy removes the negotiation.
Professional standard
Deposit terms stated in the quote
Professional contractors include their deposit requirement in the quote itself — "30% deposit due on acceptance." It is a standard term, not a special request.
Deposit percentage scaled to job size
Typical: 20–30% for residential jobs under $10k; 10–20% for larger commercial jobs. The deposit covers materials and initial mobilisation costs.
Step-by-step operating system
Deposit policy implementation
1
Define your deposit percentage by job category
Decide: small residential (under $5k), medium residential ($5–20k), larger commercial. Set a standard percentage for each. This is your policy — not a negotiation.
2
Include deposit terms in every quote
Add a payment terms section to your quote template: "A 30% deposit is required on acceptance of this quote before work commences."
BuilderBuddi: Add deposit terms to your quote templates in BuilderBuddi.
3
Issue a deposit invoice on acceptance
When the client accepts, send the deposit invoice immediately. Do not order materials or book time until the deposit is received.
BuilderBuddi: Create a deposit invoice from the job in BuilderBuddi at the point of quote acceptance.
4
Book materials and time after deposit is cleared
This is the discipline. The deposit is not a gesture — it is the trigger for mobilisation. Committing before it clears reintroduces the risk you are trying to remove.
BuilderBuddi workflow cards
Issue deposit invoices from BuilderBuddi on acceptance
Creating a deposit invoice directly from the job record links payment to the project and keeps your cash flow visible.
Jobs
Update job status to "deposit received" once payment clears
Your job board reflects real financial status — not just agreement status.
Review recordThe painter asked to waive the deposit for a repeat client
Context: A painter has done work for a client twice before. On the third job, the client asks if the deposit can be skipped as they "always pay on time."
Challenge: Waiving the deposit for one client but not others creates inconsistency and a precedent that undermines the policy.
Recommended response: Politely maintain the deposit policy: "I apply consistent terms to all jobs — 25% deposit on acceptance. Happy to invoice that immediately for you." A good client will not push back.
- • Issue the deposit invoice as normal from BuilderBuddi
- • Note in the job record that deposit policy was maintained
- • Process the final invoice on completion as usual
Field notes
- • Clients who push back hard on a reasonable deposit are telling you something about how they will behave when the final invoice arrives.
- • A deposit does not mean you distrust the client — it means you run a professional business with standard terms.
- • Never order custom materials without a deposit in hand. Custom orders are non-refundable and non-sellable.
- • Including deposit terms in the quote removes the need for a separate conversation — it is just part of how you work.
Key takeaways
- A deposit policy stated in the quote is standard professional practice, not a special request.
- The deposit covers material costs and is the trigger for mobilisation — not a courtesy.
- Never order materials before the deposit is received.
- Clients who are genuinely serious about the job will pay a reasonable deposit without pushback.
Common mistakes
Ordering materials before deposit clears
Consequence: If the client cancels or does not proceed, you are carrying the material cost with no recourse.
Prevention: Make deposit receipt the trigger for all procurement. No deposit, no materials, no booked time.
Negotiating the deposit as a goodwill gesture
Consequence: You train clients to negotiate your terms. The next client will ask for the same treatment.
Prevention: State your deposit policy in the quote. It is a term, not a request — treat it as such.
Setting a deposit percentage too low to cover materials
Consequence: A 10% deposit on a job where materials are 35% of cost still leaves you financially exposed.
Prevention: Set your deposit percentage to cover your upfront material and subcontractor costs as a minimum.
Complete this in BuilderBuddi
Implementation checkpoint
Tick these only when the real business output exists. This keeps Blueprint tied to work done, not pages viewed.
0% complete
Decision point 1: A client accepts your quote but asks to delay the deposit by two weeks. What should you do?
Practical action
Update your quote template in BuilderBuddi to include your deposit terms. For your next accepted quote, issue the deposit invoice immediately and wait for it to clear before ordering materials.
Worksheet prompt
Review your last 5 jobs. How many had a deposit? Of those without a deposit, what was the material cost exposure? Calculate the total risk you carried and the percentage that a standard deposit would have covered.
Worksheets and templates
Deposit Policy Template
DOCXStandard deposit terms wording for your quote template and client communications.
Ready for immediate use
Related operating playbooks
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