The ACT Government says there is no limit on the initial deposit for residential building work in the ACT. Industry practice is usually up to 10% of the total contract price, but that is practice, not law. Do not carry deposit caps from other states into an ACT contract.[1]
What the ACT Government says
The ACT Government's hiring a builder page says there is no limit on the initial deposit for the work. It describes industry practice as usually up to 10% of the total contract price, typically paid in advance as security for the builder and as payment toward initial material costs.
Set a deposit that reflects the agreed start-up work and materials, and explain the amount in the contract. ACT guidance recommends that later progress payments cover work already completed, so keep the initial deposit and those stage payments distinct.
Sources[1]
Put it in writing
The page says ACT legislation does not require a written contract for residential building work, but strongly recommends one. It says a contract should include a progress payment schedule describing the stages and the amounts payable at each stage. Your quote and contract are the natural place to state the deposit amount and what it pays for.
Sources[1]
Insurance check before you set the deposit
Check the residential building work insurance or fidelity fund requirements for the actual project before work starts. Confirm what the project policy covers, including any limit relevant to deposits, and explain the insurance arrangement in the contract.
Sources[1]
Deposit discussion checklist
This checklist is our recommendation, not a legal template.
| Question | What to settle | Where to write it |
|---|---|---|
| How much? | A dollar amount or a percentage of the contract price, and why that amount | Quote and contract |
| What does it pay for? | Initial materials, ordering, design or other start-up costs | Contract payment clause |
| When is it due? | A date or event, such as signing | Contract payment clause |
| What follows? | Progress payments tied to completed stages | Progress payment schedule |
| What if the job does not start? | What happens to the deposit, and what the contract says about termination | Termination clause |
| Insurance | Current project cover and its limits checked on your policy | Insurance details in the contract |
Sources[1]
Common questions
- What is the maximum deposit a builder can ask for?
- For residential building work in the ACT, the ACT Government says there is no limit on the initial deposit, though industry practice is usually up to 10% of the total contract price. That is practice rather than law, and other states and territories set their own rules.[1]
Official sources
Checked 16 October 2026. Rules can change; use these sources to check the requirements for your job.
Related guides
- Free quote template for Australian tradies
- How do I make an ACT security of payment claim?
- How do I cost a trade job before quoting?
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