Should I hire a renovation contractor who asks for more than 10% deposit in NB?

No, you should not hire a renovation contractor who asks for more than 10-15% deposit in New Brunswick. Legitimate, established contractors have the working capital to purchase initial materials and begin work without requiring large upfront payments from homeowners.

A contractor demanding 25%, 50%, or more upfront is a major red flag that indicates potential cash flow problems, inexperience, or worse — contractors who collect large deposits and disappear. Reputable NB contractors typically ask for 5-10% to secure the project start date, with the balance paid in milestone payments tied to completed work. For example, 10% to start, 25% when materials are delivered, 25% at rough-in completion, 25% when substantial work is finished, and 15% on final completion and walkthrough.

The only legitimate exceptions are custom millwork or special-order materials that require manufacturer deposits — like custom kitchen cabinets, specialty windows, or imported tile. Even then, the contractor should provide receipts showing the deposit went directly to the supplier, not into their general account. For a $40,000 kitchen renovation, a contractor might legitimately need $3,000-$5,000 upfront to order custom cabinets, but they should show you the cabinet company's invoice requiring that deposit.

New Brunswick's construction industry has seen its share of deposit scams, particularly targeting seniors and homeowners in rural areas. The pattern is always the same — smooth-talking contractors offer below-market pricing, claim they need substantial upfront payment for materials, then either disappear entirely or start the work but abandon it when the easy money runs out. These scammers often target storm damage repairs, driveway paving, and roofing work.

Protect yourself by structuring payments around completed milestones. For a basement renovation, you might pay 10% to start, 30% when framing and electrical rough-in are complete and inspected, 30% when drywall and flooring are finished, and 30% on final completion. This keeps the contractor motivated to complete each phase properly and protects your money if problems arise.

Always verify the contractor carries WorkSafeNB coverage and general liability insurance before paying any deposit. Request their WorkSafeNB clearance letter and insurance certificate. A contractor who cannot provide these documents should not receive any payment. Also confirm they will pull proper permits for structural, electrical, or plumbing work — contractors who skip permits often skip other important steps.

If a contractor pressures you to pay a large deposit immediately — claiming material prices are rising, they have a crew starting Monday, or they can only hold your pricing for 24 hours — walk away. Legitimate contractors provide written quotes that remain valid for 30+ days and understand that homeowners need time to review contracts and check references.

Get everything in writing before paying any deposit. The contract should specify materials, timeline, payment schedule, change order process, warranty terms, and permit responsibility. Never pay a deposit based on a verbal estimate or handshake agreement, no matter how trustworthy the contractor seems.

Need help finding experienced renovation contractors who follow proper business practices? New Brunswick Renovations can connect you with local professionals who understand appropriate payment structures and carry proper insurance and WorkSafeNB coverage.