Why Contractors Request Deposits (And How to Tell It’s Legitimate)

When a contractor asks for a deposit, it’s not a scam — it’s a standard part of how construction works. Deposits allow contractors to:

  • Purchase materials
  • Schedule labor
  • Reserve equipment
  • Cover permits
  • Begin prep work like demolition or site work

For outdoor kitchens, , decks, or remodels, material costs alone can be thousands of dollars. Without a deposit, your contractor takes on all the risk.


How Much Is Normal to Pay Up Front?

In the Texas Hill Country, it’s normal for contractors to request up to 50% upfront, depending on:

  • Project size
  • Material costs
  • Scheduling accommodations 

Deposit vs. Scam: How to Spot the Difference

A standard deposit is very different from a shady demand.

Signs of a Legitimate Deposit:

  • Written contract
  • Clear payment schedule
  • Website and social media presence
  • Established business with reviews and a local address
  • Flexible payment options (wire transfers are best as it is a legal binding contract between both parties)

Red Flags of a Scam:

  • No written contract
  • Vague or verbal estimates
  • Cash-only requests
  • High-pressure tactics
  • No online presence, website, or references
  • “We’re just in the neighborhood” approach

⚠️ In the Hill Country, scams often appear after hailstorms or heavy rains, especially in areas like Lake Travis, Liberty Hill, Jonestown, Georgetown, Round Rock, and Cedar Park/ Leander. Always verify before paying.


What a Trustworthy Payment Schedule Looks Like

A reputable contractor will tie payments to milestones, not just ask for money upfront. A typical schedule looks like this:

  1. Initial Deposit (30%–50%) – Secures your spot and covers materials
  2. Progress Payment (25%) – Once major work begins (demo, framing, or materials delivery)
  3. Final Payment (25%) – When the job is complete and inspected

At Pro X Home Solutions LLC, we provide clear documentation for every payment and never request final payment until the job is finished and approved.


Bottom line: Deposits keep your project moving and protect both you and your contractor. With the right contract and payment schedule, you can move forward with confidence.

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