Contractor down payments in Washington (2026):
how much to pay up front and how to protect it
HOW MUCH SHOULD I PAY A CONTRACTOR UP FRONT IN WASHINGTON?
We found no Washington law that caps a home improvement down payment. The Washington Attorney General's Office has advised limiting the initial down payment to 10 to 20 percent, so you can hold back the final amount based on performance. L&I says not to pay in full until the job is done, and treats a request for cash, or for a check made out to someone other than the business, as a red flag.
How much to pay up front
| Job price | 10% down | 20% down |
|---|---|---|
| $5,000 | $500 | $1,000 |
| $10,000 | $1,000 | $2,000 |
| $20,000 | $2,000 | $4,000 |
| $40,000 | $4,000 | $8,000 |
- No legal cap that we found. Washington's contractor registration law (chapter 18.27 RCW) requires registration, a bond and a disclosure statement, but we found no limit on the size of a deposit.
- The Attorney General's guidance. "Limit the initial down payment to 10-20 percent so that you can hold back the final amount based on performance."
- If you're asked for more up front, for example to order materials, get the reason and the order in writing, and consider paying the supplier jointly (see below).
A payment schedule that protects you
- Put it in the contract. The Attorney General's Office lists the payment schedule among the things a written contract should cover, with the total price including taxes and fees, start and finish dates, materials and warranties.
- Pay as work is done. Tie each payment to a visible stage of the work, not to dates.
- Hold back the final payment. L&I says owners may withhold a percentage of the contract until the work is done to their satisfaction, and not to pay in full until the job is done.
- Get lien releases first. Before the final payment, L&I advises asking each contractor and material supplier for a completed lien release. Unpaid subcontractors and suppliers can put a lien on your home: see construction liens in Washington.
- Pay jointly. L&I suggests checks payable jointly to the contractor and the subcontractor or supplier.
Red flags before you pay
- A request for cash, or a check made out to a person instead of the business (L&I).
- Pressure to sign the same day. The Attorney General's Office advises getting multiple bids and never signing on the same day.
- No registration. Check the contractor on L&I's Verify a Contractor tool before you pay anything.
- No disclosure statement on a job of $1,000 or more on your home (RCW 18.27.114).
Canceling after you sign
| Rule | When it applies | Deadline |
|---|---|---|
| FTC Cooling-Off Rule | Sales of $25 or more made at your home | Midnight of the 3rd business day |
| RCW 63.14.154 | Financed (installment) sales solicited in person away from the seller's address | Midnight of the 3rd day, not counting Sundays and holidays |
The FTC rule doesn't cover a repair you asked the seller to come and do, sales needed to meet an emergency, or sales finished at the seller's place of business. Extra items sold beyond the repair you asked for are still covered. To cancel under either rule, send written notice by certified mail before the deadline and keep a copy.
If the contractor takes the deposit and disappears
- Send a written list of what you need, with a deadline, as L&I suggests before going to court.
- A registered contractor carries a bond: $30,000 for a general contractor and $15,000 for a specialty contractor. A homeowner has two years to sue on it. See contractor bond claims.
- If the bond isn't enough, L&I's Homeowner Recovery Fund can pay up to $25,000 on a court judgment against a registered contractor.
Frequently asked questions
How much of a down payment can a contractor ask for in Washington?
We found no Washington law that caps it. The Washington Attorney General's Office has advised limiting the initial down payment to 10 to 20 percent, so you can hold back the final amount based on performance.
Should I pay a contractor in full before the job is done?
No. L&I says not to pay in full until the job is done, and suggests withholding a percentage of the contract until you're satisfied and have lien releases from contractors and suppliers.
Is it a red flag if a contractor wants cash?
Yes. L&I says requests for cash, or for checks made out to someone other than the business, are tactics often used by unregistered contractors and scam artists.
Can I cancel a home improvement contract in Washington?
Sometimes. The FTC Cooling-Off Rule lets you cancel most sales of $25 or more made at your home until midnight of the third business day. It doesn't cover a repair you asked the seller to come and do, or emergencies.
What can I do if a contractor took my deposit and didn't do the work?
Send a written demand first. If that fails, you can sue on the contractor's bond in superior court within two years, and L&I's Homeowner Recovery Fund can pay up to $25,000 more on a judgment against a registered contractor.
Sources
- Washington Attorney General's Office — Hiring a reputable contractor (March 7, 2008) and Never commit to big home repair jobs the same day (March 9, 2012)
- L&I — Wildfire repairs? Get 3 contractor bids (September 22, 2020)
- L&I — Facts About Construction Liens, F625-017-000 (January 2026)
- Federal Trade Commission — Buyer's remorse: the FTC's Cooling-Off Rule
- RCW 63.14.154 — Buyer's right to cancel and RCW 18.27.114 — Disclosure statement
- RCW 18.27.040 — Contractor bonds; L&I — Homeowner Recovery Fund
All sources accessed November 9, 2026.
This guide summarizes Washington and federal consumer information. It is not legal advice. For a dispute over a deposit, talk to a Washington attorney or the Attorney General's Office. See our disclosure and disclaimer.