Fox 13's report on a Hillsborough County, Florida, contractor sting describes one suspect who "quoted $14,000 for heating and air conditioning work with half required up front." That's $7,000 before any work. In Boise, police say two siding customers paid thousands for jobs that were never completed. Both are allegations. Still, if you're wondering how much deposit for contractor work is fair, here's the short answer: plan on 10% to one-third of the job, not half. In California, the law sets the limit lower.
The Florida case came out of Operation Bad Builder, which the Hillsborough County Sheriff's Office says ran from June 1 to Oct. 2, 2026, and led to 50 arrests. It targeted unlicensed contracting, not deposits. Detectives worked from online ads, resident tips and undercover meetings, and yourNEWS, citing the sheriff's office, reports they set up a Riverview location and posed as homeowners.
In Idaho, Boise Police arrested Toby Tibbitts, 28, of Caldwell, owner of Ethical Remodeling, on Oct. 15, 2026, on two felony grand theft counts tied to siding contracts signed May 7 and July 11. Police wrote, per the Idaho Statesman: "In both cases, evidence indicates the victims paid Tibbitts thousands of dollars, but work was never completed." No exact amounts have been released. These are accusations, not findings of guilt.
How much deposit should a contractor ask for?
Government consumer guidance mostly lands between 10% and one-third of the contract price. The exact number depends on who's giving the advice and where you live.
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10%: Hillsborough County, in a warning about pool contractors, says: "A 10% down payment is normal and should be plenty to cover what they need to get started."
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About 20%: The Ohio Attorney General's FAQ says to pay a reasonable down payment, "perhaps 20 percent of the total cost."
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One-third: The Arizona Attorney General says: "Do not pay more than 1/3 of the total cost as a down payment."
Even one office's advice can shift over time. A 2015 Ohio AG release said to limit advance payments to no more than 10% if possible. An April 2024 newsletter suggested a third at the start, a payment once the work is halfway done and you're satisfied, and the final third at completion. A May 2026 release says to avoid any contract requiring a large down payment or full payment before the project is completed and inspected.
Here's what those numbers look like on a $14,000 job:
| Deposit level | On a $14,000 job | Where the number comes from |
|---|---|---|
| Half | $7,000 | The amount in the Fox 13 report |
| One-third | About $4,667 | Maryland cap, Massachusetts cap before any special-order allowance, Arizona AG ceiling |
| 20% | $2,800 | Ohio AG FAQ |
| 10% | $1,400 | Hillsborough County norm, Florida legal trigger (not a cap) |
| Lesser of $1,000 or 10% | $1,000 | California cap |
Is it normal for a contractor to ask for 50% up front?
It's the number to push back on. A half-down request doesn't prove anyone is dishonest, but it sits above the official guidance above and above the legal caps in several states.
Hillsborough County's pool contractor warning says advance payments should never reach 50% or more. Maryland and Massachusetts generally cap deposits at one-third. The 2015 Ohio release went further, telling consumers to be skeptical of a large down payment "such as a third or more of the total cost."
There's also a practical reason to be careful. In a separate Boise case, CBS2 reported that Seth Wooddell, 31, was arrested Dec. 16, 2025, on three felony grand theft counts. Police said Wooddell collected a down payment from each victim, typically half the job cost, and never completed the work. That's an allegation too, but it shows what's at stake: the bigger the deposit, the more you stand to lose if the job stalls.
Are there legal limits on contractor deposits?
In some states, yes. The FTC notes that some states limit how much a contractor can ask for as a down payment. The rules vary widely, so here are the ones we confirmed in three regions.
West: California and Idaho
California: For a home improvement job or swimming pool, the Contractors State License Board says the down payment can't be more than $1,000 or 10% of the contract price, whichever is less, excluding finance charges. Special-order materials don't get an exception. The contract needs a detailed written payment schedule, and apart from the down payment, payments can't exceed the value of work performed.
Idaho: The state's contractor FAQ says, "The Act requires registration, not licensure." Registration applies to construction jobs exceeding $2,000 in materials and labor, unless exempt. A general contractor must give you a disclosure statement before a contract over $2,000, plus a second one before final payment listing subs and suppliers who provided work or materials worth more than $500. The FAQ doesn't mention a deposit limit, so use the benchmarks above and direct questions to the Division of Occupational and Professional Licenses (DOPL) at 208-334-3233.
Southeast: Florida
Florida's 10% figure is a trigger, not a cap. Under section 489.126, anyone who takes an initial payment above 10% on residential work must apply for permits within 30 days of payment, unless none are needed. The work must then start within 90 days after permits issue, absent just cause or a written agreement allowing longer. The law covers people promising this work whether or not they're licensed.
Northeast and Mid-Atlantic: Massachusetts and Maryland
Massachusetts: Under Chapter 142A, Section 2, contracts must be in writing and include a payment schedule with each amount in dollars. An advance deposit can't exceed the greater of one-third of the contract price or the actual cost of special-order or custom-made materials or equipment. No final payment may be demanded until the contract is completed to the parties' satisfaction.
Maryland: Under section 8-617, no payment may be demanded or received before the contract is signed, and no deposit above one-third of the contract price is allowed before or at signing. HB 1499 would have raised that to one-half effective Oct. 1, 2026, but the official bill page shows a canceled hearing as its last action and no passage. Treat one-third as the rule.
Everywhere else: Ask your state or local consumer protection agency before you sign. A quick call can tell you whether your state sets a limit.
Should you pay for materials up front?
Special-order materials are the one reason a larger early payment can make sense, but only where your state allows it. Massachusetts lets a deposit rise to the actual cost of special-order or custom-made items. California makes no such exception.
If a contractor says a bigger deposit is for materials, ask to see what's being ordered and what it costs. Then consider paying only that portion early, and get the amount written into the contract.
What payment schedule should you ask for?
Tie each payment to finished work, not to calendar dates. The Arizona AG recommends linking remaining payments to completion of specified amounts of work. Here's an example for a $14,000 replacement. This is our illustration, not a legal standard:
| Stage | Payment | Running total |
|---|---|---|
| Contract signed | $2,800 | $2,800 |
| Equipment on site and permit issued | $4,200 | $7,000 |
| Installation complete | $4,200 | $11,200 |
| Passed inspection and proof that subs and suppliers were paid | $2,800 | $14,000 |
A few adjustments by location and comfort level:
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California: The signing payment tops out at $1,000, and later payments can't exceed the value of work performed. Don't use this table as written.
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Florida: $2,800 is above 10%, so the permit and start deadlines described above would apply.
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A tighter version: Pay $1,400 at signing and $5,600 at the equipment stage. The last two payments stay the same.
That last payment is your leverage. The FTC says to "never make the final payment until the work is done and you're satisfied with it." The Arizona AG also says to hold it until you have written proof that subs and suppliers were paid, because unpaid ones may file a mechanics lien.
Which answers should send you to another bidder?
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"Half now, half when done." You'd have $7,000 out on a $14,000 job and no payment tied to progress in between.
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"Cash only." The FTC lists this as a warning sign, and the Ohio AG notes cash leaves a limited paper trail.
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"Make the check out to me." The Ohio AG advises caution with checks "made out to them personally."
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"Don't worry about the permit." Sheriff Chad Chronister told Fox 13 these operators say things like, "Hey, we can get started immediately. Don't worry about the permit process." Richard Cranker of UA Plumbers & Pipefitters Local Union 123 advised homeowners to "insist that the contractor pull the proper permits."
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"Pay in full and I'll get you on the schedule." The FTC says not to pay the full amount up front, and the Hillsborough sheriff's office says to "never pay the full amount up front."
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"Pay me and I'll send the contract." Maryland bans payment before signing, and anywhere else you'd be paying without written terms.
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No license or registration number on the contract. The FTC says a contract should list the contractor's name, address, phone and license number.
What to do before you hand over a check
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Look up the license or registration. In Florida, use MyFloridaLicense.com. In Idaho, call DOPL. Elsewhere, check with your state or local licensing agency.
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Get proof of insurance. The sheriff's office puts this on its list, alongside getting everything in writing and being wary of social media and marketplace ads.
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Sign a complete contract. The FTC says it should include estimated start and completion dates, with all blanks filled in. Add your payment schedule, with each amount in dollars.
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Pay in a way you can trace. Skip cash, and don't write checks to an individual when the contract is with a business.
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Get a receipt. The Ohio AG recommends one for partial payments and deposits.
What if a contractor took your deposit and hasn't started?
Put your demand in writing, keep your paperwork together and move quickly.
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Check your cancellation window. If you signed at home, the FTC describes a written right to cancel within three business days.
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In Florida, use certified mail. If the deadlines are missed, section 489.126 lets the owner send a written demand by certified mail, and failure to act within 30 days may be treated as lacking just cause. Failure to refund within 30 days of a written demand supports an inference of criminal intent. Penalties range from a first-degree misdemeanor for amounts under $1,000 to a first-degree felony at $200,000 or more.
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Report it to local law enforcement. Possible victims in the Hillsborough case can call detectives at 813-247-8200. Boise police believe there may be more victims in the Tibbitts case, and the contact is Sgt. Ryan Thueson at RThueson@cityofboise.org.
Be realistic about getting the money back. The Idaho Statesman reported in 2023 that at least nine former customers of a Treasure Valley contractor won small-claims judgments, mostly by default, and none had been paid. The contractor said they planned to file for bankruptcy, and the county prosecutor declined to file charges. That's why a smaller deposit is your best protection: it limits your loss from the start.
The bottom line: set your terms before you collect bids
Don't wait for a contractor to name the deposit. When you request quotes, say what you'll pay at signing and share your milestone schedule. Use 20% or less as your opening position, one-third as your ceiling unless special-order costs are documented and your state allows more, and California's lower cap if you live there. A contractor who wants the job can tell you what they'd adjust and why. Drop any bidder who won't put a reasonable schedule in writing.
Related reading
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Ceiling Leak? What to Do in the First 48 Hours, Room by Room
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How to Run an Alabama Contractor License Lookup Before Isaias Repairs
Sources
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Fox 13: 50 unlicensed contractors busted in Hillsborough County
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yourNEWS: 50 People Arrested in Hillsborough County Unlicensed Contractor Sting
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City of Boise: Boise Police Arrest Contractor on Felony Theft Charges
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Idaho Statesman via Yahoo: Boise police say contractor took money, left jobs unfinished
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CBS2: "Ethical Remodeling" owner arrested, charged with grand theft
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Idaho Statesman via Yahoo: Treasure Valley residents rankled by contractor accused of fraud
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California Contractors State License Board: What is a Contract?
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Ohio AG FAQ: A home improvement contractor asked me for payment upfront
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Hillsborough County: Building a backyard pool? Avoid getting scammed
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