What is the typical deposit amount that contractors in Ottawa ask for before starting a basement renovation?

In Ottawa, reputable basement renovation contractors typically request 10-25% of the total project cost as a deposit, with most established companies asking for around 15-20% to secure your project start date.

The deposit amount often depends on the project scope and timeline. For smaller basement finishing projects ($30,000-$60,000), you might see deposits in the $5,000-$12,000 range. Larger secondary suite conversions ($80,000-$150,000) could require $12,000-$30,000 upfront. Never pay more than 25% upfront - this is both a red flag for potential issues and often violates consumer protection guidelines in Ontario.

Legitimate reasons contractors request deposits include securing your spot in their schedule, ordering custom materials specific to your project, and covering initial permit fees. At Ottawa Basements, deposits help us pull building permits through the City of Ottawa (which can take 2-4 weeks) and order specialty items like egress windows or custom millwork that have longer lead times.

Be cautious of contractors demanding large upfront payments - especially those asking for 50% or more before starting work. Under Ontario's Consumer Protection Act, contractors cannot legally demand payment exceeding the value of work completed, plus a reasonable amount for materials delivered to your property. If a contractor is asking for a massive deposit "to buy materials," this could indicate cash flow problems or worse.

Payment schedule best practices in Ottawa typically follow a structure like: 15% deposit to start, 25% when framing is complete, 25% at drywall stage, 25% when flooring and fixtures are installed, and final 10% upon completion and your satisfaction. This protects both you and the contractor throughout the renovation process.

For secondary suite projects requiring City of Ottawa permits, expect the deposit to cover permit fees ($1,500-$5,000+) and architectural drawings if needed. Always ensure your deposit is refundable if permits are denied or if the contractor fails to start work as scheduled.

Red flags to avoid: contractors asking for full payment upfront, those without WSIB coverage demanding large deposits, or anyone pressuring you to pay immediately. Take time to verify their license, insurance, and references before writing any checks.

Want to discuss deposit structures for your specific basement project? Ottawa Basements provides transparent pricing and reasonable payment schedules with every free estimate.