Legal Question in Construction Law in California

Re: Residential Construction Deposits

On a home improvement project, the maximum deposit is $1000 or 10%, whichever is less. Any deposit higher than than amount could subject the contractor to disciplinary action.

Re: Residential Construction Deposits

I agree with the previous response.

However, please note that the $1000/10% is applicable to contractors, not to engineers/consultants. I know of no such limitation for engineering/consulting contracts.

Typically, on residential contracts, I see one of two variants. For small engineering contracts (less than $10K or so) many engineers require half the contract amount up front and the other half when the drawings are first submitted to the Department of Building and Safety.

In the second variant, usually for engineering contracts larger than $10K, there is a percentage due up front (around 30% or so), a percentage due after the first submittal (maybe 50%), and the remaining balance once the building permit issues.

Best of Luck!