What is the average deposit a renovation contractor asks for in New Brunswick?

A legitimate renovation contractor in New Brunswick should ask for a deposit of 10-20% of the total contract value upfront, with the remainder structured as milestone payments tied to completed stages of work — never pay more than 30% before work begins, and be very cautious of any contractor demanding 50% or more upfront. The deposit protects the contractor against client cancellation and covers initial material orders; it should not be a significant profit advance.

For smaller renovation projects under $20,000 — a bathroom update, basement framing, exterior door installation — a deposit of $1,000-$2,500 is common and reasonable. For mid-range projects running $30,000-$80,000, a $3,000-$10,000 deposit (roughly 10-15%) is standard across the NB market. For larger whole-home renovations or full additions, some contractors will structure the deposit lower as a percentage because the total value is high and a smaller percentage still provides adequate assurance.

The payment structure beyond the deposit matters just as much as the deposit amount. A well-structured renovation contract in NB typically looks like this: 10-15% deposit on signing, 25-30% at project commencement (when materials arrive and work begins in earnest), 25-30% at a defined mid-project milestone (rough-in inspections passed, structure complete), 20-25% as work is substantially completed, and 10% holdback retained until final inspection and deficiencies are corrected. That holdback is your leverage to ensure every detail is finished properly.

Provincial construction law in New Brunswick provides some protection through lien holdback provisions — owners are entitled to hold back a percentage of payment as protection against liens by subcontractors or material suppliers. Your contract should address this explicitly. Ask your contractor how they handle their subs and suppliers, because a GC who doesn't pay their electrician or lumber yard on time can create a lien on your property even if you paid the GC in full.

A contractor demanding 40-50% or more upfront is a serious red flag, particularly for smaller operations without an established local track record. This deposit size means they're asking you to fund their business operations rather than your project. Legitimate contractors with good cash flow, supplier credit, and a stable business do not need a large upfront cash injection to start your job. When someone you've never worked with asks for $25,000 before a hammer swings, that's the moment to ask for references, verify their WorkSafeNB coverage, and check their business history carefully.

Always tie your payment schedule explicitly to project milestones, not to dates on the calendar. Paying $15,000 on March 15th regardless of project progress gives you no leverage if work stalls. Paying $15,000 when the plumbing rough-in inspection is passed and the walls are closed gives the contractor incentive to hit that milestone and gives you assurance that you're paying for completed work.

Get every payment term in writing as part of your contract — the deposit amount, the milestone definitions, the holdback percentage, the timeline for final payment, and what happens if either party defaults. A verbal agreement on payment terms is unenforceable when a dispute arises. This is one of the most common sources of renovation disputes in NB, and a simple, clearly worded payment schedule in the contract prevents most of them.

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Looking for experienced contractors? The New Brunswick Construction Network connects homeowners with qualified professionals:

• Thirty Four Renovations
• Gionetterenovations