Big deposits vs. milestone billing
The payment schedule is the quietest page of the contract and the one that decides who holds the leverage. A fair schedule ties every dollar to finished work.
Once money leaves your account, your leverage goes with it. A contractor who is holding half your budget before the first nail has very little reason to hurry — and you have very little recourse if they don’t.
Utah doesn’t cap deposits on most residential work, so the contract is your only protection. The good news: fair payment schedules are common, and asking for one is a normal, unremarkable request.
What a fair schedule looks like
A modest deposit — typically 10 to 20 percent, enough to cover real mobilization costs — followed by payments tied to completed, inspectable milestones: foundation poured, framing done, rough-ins passed inspection, finishes complete.
The last 5 to 10 percent should stay in your pocket until the punch list is finished. That holdback is what gets the final loose ends done; without it, the last week of every project tends to stretch into months. When you do hand over that last check, exchange it for final lien waivers — the two protections work together.
Red flags in the schedule
Watch for deposits above a third of the contract price, payments due on calendar dates instead of milestones, vague “mobilization fees” that aren’t itemized, and a final payment due before the punch list is complete. Each one moves risk from the builder to you.
Before you sign
- Keep the deposit at or under 20 percent — never half.
- Tie every payment to a completed, inspectable milestone.
- Hold 5–10 percent back until the punch list is done.