Ledge

How to Collect a Deposit Before Starting Any Landscape Job

EG
Edgar Galindo
April 14, 2026· 7 min readInvoicing
How to collect a deposit on a landscape job — timing, percentage, contract language, and payment methods

You ordered $12,000 in plant material and pavers, scheduled your crew, and the client canceled the week before start. That $12,000 came out of your operating account.

Every landscape contractor has a version of that story. Materials ordered, schedule committed, crew lined up — and then something changes on the client side. Without a deposit, you absorb that risk entirely. With one, the client has skin in the game and you have coverage for your hard costs before a single hole gets dug.

A deposit is not a trust issue. It is a professionalism signal. The contractors who do not charge deposits are the ones who get burned — and eventually, they either start charging deposits or they stop being contractors.

How Much Deposit to Charge

The right deposit amount depends on job size and material cost. Here is the framework most experienced contractors use:

  • Jobs under $5,000: 50% deposit. These jobs often complete in one or two days. A 50% upfront covers materials and most labor before you start.
  • Jobs $5,000–$25,000: 33–40% deposit. This is the most common range for residential landscape work. At 33%, a $15,000 job gets a $5,000 deposit — enough to cover your material order with something left over.
  • Jobs over $25,000: 33% with a draw schedule for the remainder. On a $60,000 project, 33% is $19,800 — a meaningful commitment that funds your initial material purchases and mobilization.

Some states cap contractor deposits by law. In California, home improvement contractors are limited to 10% or $1,000, whichever is less, on licensed work. Know your state rules. Most states have no cap, but verify before quoting a deposit amount to a new client.

When to Ask for the Deposit

The right moment is when the client signs the contract — not after, not the day before you start, but at signature. Make the deposit a condition of the start date. Your contract language should say something like: "A deposit of 33% of the total contract value is due upon signing. Work will be scheduled upon receipt of deposit."

This framing positions the deposit as a scheduling requirement, not a trust issue. You are not asking if they will pay — you are explaining how your booking process works. Most clients respond to process language better than they respond to payment demands.

Landscape contract deposit clause showing upfront payment percentage, due date, and refund terms

How to Present the Deposit Without Pushback

Most clients do not push back on deposits — they push back when contractors act apologetic about asking. If you say "we typically require a deposit, if that is okay with you," you have already invited negotiation. Instead, say "here is how our process works — we collect one-third at signing, which locks in your schedule and lets us order materials." That is a statement, not a request.

Clients who genuinely cannot pay a deposit on a $20,000 project are telling you something important about their financial position. A client who cannot write a $6,600 check upfront may not be in a position to write a $13,400 check later either.

"A client who refuses your deposit requirement is a client who just told you the job might not close."

What Happens to the Deposit if the Client Cancels

Your contract must address this clearly. A reasonable policy: the deposit is non-refundable if the client cancels within 10 business days of the scheduled start date. Before that window, you may refund minus any materials already ordered or costs already incurred.

Do not make this policy up on the spot when a cancellation happens. It needs to be in the signed contract before work begins. A client cannot dispute a refund policy they agreed to in writing. They absolutely can dispute one you announce after the fact.

How to Collect the Deposit

Send the deposit invoice immediately after the contract is signed. Do not wait until the next morning. Include a payment link for ACH or credit card. Make paying the deposit as frictionless as paying for anything online — link in the email body, clear amount, your company name and project reference.

Some contractors use digital signatures that prompt for payment at the moment of signing. That workflow eliminates the follow-up step entirely — the deposit is collected in the same session the contract is signed. That is the fastest way to confirm commitment and get materials ordered.

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Frequently Asked Questions

Is it legal to require a deposit before starting landscape work?

Yes, in most states. Some states — notably California — cap how much a licensed contractor can collect upfront for home improvement work. In California, the limit is 10% or $1,000, whichever is less. Other states have no cap. Always verify your state's contractor licensing laws and check whether landscape installation qualifies as home improvement under your jurisdiction.

What should I do if a client refuses to pay a deposit?

Do not start the job. A client who will not pay a 33% deposit on a $15,000 project — a $5,000 check — is either not financially ready for the project or does not trust you enough to commit. Either situation is a problem that will not improve once your crew is on site. Hold your ground or walk away.

Should the deposit be refundable?

Partially. Define a cancellation window in your contract — typically 10 business days before the scheduled start date. If the client cancels before that window, refund the deposit minus any costs already incurred (materials ordered, design time, permits pulled). If they cancel within that window or after work begins, the deposit is non-refundable to cover your mobilization costs.

What payment method should I accept for deposits?

ACH bank transfer is preferred for larger deposits — no processing fee, funds clear in 1–3 business days. Credit card is fine and convenient, but you will pay 2.5–3% on a $6,000 deposit, which is $150–$180 in fees. Decide whether to absorb that or pass it through. Check works too, but confirm it clears before ordering materials — never order materials against an uncleared check.

EG

Edgar Galindo

Co-founder, Ledge

Edgar built Ledge while running a landscape design-build company in Central Texas. He started requiring deposits after absorbing a $14,000 materials cost on a job that canceled five days before start.