How much deposit can a builder ask for in NSW?
Researched by the LokalMatch editorial team1 answer
We have been asked for a quarter of the price before the first delivery arrives.
Answers (1)
LokalMatch EditorialLokalMatch editorial
Ten per cent, and not a dollar more. New South Wales sets a single maximum deposit before work starts, and it does not change with the size of the job or the nature of the materials.
A quarter up front is therefore not a negotiating position; it is outside what the licence permits, and a builder who does not know that has told you something about how the rest of the job will be run.
The figure is also the answer to the special-order argument. Cabinetry, stone, imported tiles — nothing on that list lifts the ceiling. If genuinely long-lead items are involved, the honest structure is a progress payment tied to their delivery, documented in the schedule, rather than a bigger deposit.
Check one thing before you pay anything at all on a job over 20,000 dollars: that the builder holds Home Building Compensation cover for it. That cover has to be in place before any money changes hands, deposit included.
Answers come from pros and are reviewed by LokalMatch before they’re published. They’re general information — for regulated or safety-critical work, have a licensed professional assess your situation.
Sources
Where the facts on this page come from.
Consumer Building Guide — NSW Government (accessed 24 September 2026)
Insurance cover for building work — NSW Government (accessed 24 September 2026)