Guide · Getting paid
Deposit and progress payment wording that gets you paid
Payment terms written on the invoice are a request. Payment terms written on the quote are an agreement. Here's the wording for deposits, stage payments and final claims — set before the job starts, while the customer still needs you more than you need them.
Last updated 2026-07-11 · Reviewed by the TradieCue team
Good deposit wording for a trade quote states three things: the amount (a percentage or fixed figure), when it's due (on acceptance of the quote), and what it secures (your start date and materials order). For longer jobs, add progress payments tied to named stages of work — not calendar dates — plus a final payment on completion and how defects are handled. All of it belongs on the quote, agreed before work starts.
Why payment terms go on the quote, not the invoice
By the time an invoice exists, the work is done and your bargaining power is spent — whatever terms it announces, the customer never agreed to them. The quote is the document the customer accepts, which makes it the only place your payment terms actually become part of the deal. A quote that covers scope and price but not payment has left when you get paid to goodwill. Put the terms next to the price, so accepting one means accepting both.
Deposit wording: amount, timing, purpose
Weak wording asks; strong wording states. Compare "a deposit would be appreciated before commencement" with:
Deposit: 10% of the quoted total ($1,240), payable on acceptance of this quote. Your job is scheduled and materials are ordered once the deposit is received.
Three jobs done in two sentences. The amount is stated in percentage and dollars, so there's nothing to calculate or dispute. The timing is a specific event — acceptance. And the purpose line does the quiet work: the deposit isn't a favour to you, it's what triggers the scheduling and the materials order. Customers pay faster when the deposit visibly buys something.
Deposit caps exist — check yours before setting a number. Several states cap the deposit that can be taken for domestic building work, with the cap depending on job size, and some also regulate progress payment structures on residential contracts. We're deliberately not quoting figures — they vary by state and change. Check your state building authority's rules for your job size before setting your percentage. This page is general information, not legal advice.
Progress payment wording for longer jobs
Anything beyond a couple of weeks shouldn't ride on one invoice at the end — that's you bankrolling the customer's renovation. Break the price into stage payments tied to a named, observable stage of work, never a calendar date. "Payment 2 due 15 August" invites an argument if the job shifts a week; "payment 2 on completion of rough-in" is either true or it isn't:
Payment schedule: Deposit on acceptance — $1,240. On completion of demolition and rough-in — $3,720. On completion of waterproofing and tiling — $4,960. Balance on practical completion — $2,480. Each claim is invoiced at the stage and payable within 7 days.
Two details carry the weight: each stage is defined by finished work the customer can see, so "is it due?" is never a matter of opinion, and the payable-within days are stated per claim — a stage claim without a due date is just another request.
Final payment and the defects period
The last payment is the one customers sit on, usually with a list of small items as the stated reason. Wording that keeps it moving separates completion from perfection:
Final payment: balance payable on practical completion — when the works are complete and usable for their intended purpose. Minor defects or omissions notified in writing within 14 days will be attended to promptly and do not affect the due date of the final payment.
The last clause matters most: it commits you to fixing genuine defects while removing the incentive to invent them as a payment delay. For registered domestic building work, statutory warranty obligations apply on top of whatever your quote says.
Keep variation payments on the same schedule
Variations agreed mid-job need a payment home, or they all pile into the final invoice — which is how a well-structured job still ends in a lump-sum argument. One line fixes it: approved variations are invoiced with the next progress claim. A large variation can state its own payment terms instead. Either way, decide when the extra gets paid at the moment it's approved, not at the end.
The trap: starting before the deposit lands
The most common self-inflicted wound isn't bad wording — it's good wording ignored. The quote says work is scheduled once the deposit is received; the calendar has a gap; you start anyway, deposit "on its way". The deposit existed to test that this customer pays money when money is due, before you've spent on materials. A customer who is slow with the deposit is telling you, cheaply, how the final invoice will go. The start date moves when the deposit arrives, not before.
A worked example
A $12,400 inc-GST bathroom renovation, about three weeks on site. The tradie wants materials covered early, cash flow across the job, and no stand-off at handover.
Payment terms — bathroom renovation, 8 Warrick St (total $12,400 inc. GST)
Every payment is tied to visible work, every claim has a due date, and variations already know where they land. Check your state's deposit and progress-payment rules for your job size before copying the structure.
Common mistakes
- Terms announced on the invoice. The customer never agreed to them. Terms live on the quote.
- Stages tied to dates instead of work. Jobs move; "on completion of rough-in" moves with them.
- A percentage with no dollar figure. "10% deposit" makes the customer do arithmetic; "$1,240" gets paid.
- No defects wording. Every scuff mark becomes a reason to hold the final payment.
- Variations with no payment timing. They default to the final invoice, and the final invoice becomes the fight.
- Starting before the deposit lands. The deposit is your cheapest test of whether this customer pays. Don't waive it.
Where TradieCue fits
TradieCue quotes carry payment terms — including a deposit and the days a payment is due — so the terms travel with the price instead of being remembered at invoice time. Talk the job out rough and Timmy drafts the quote; the amounts and terms are yours to set, and everything stays an editable preview until you share it yourself. Nothing is sent automatically. Every quote, variation and follow-up is a draft the user reviews, edits and shares themselves. The boundary: TradieCue drafts documents — it doesn't process payments or collect deposits, and no draft is legal advice on what your state allows.
When a payment does go quiet, payment follow-ups drafts the chase message from the job's context — see how to follow up an overdue invoice for the playbook.
Common questions
How much deposit should I ask for on a trade job?
Enough to cover early materials and prove the customer pays — but for domestic building work, several states cap deposits depending on job size, so check your state building authority's rules before settling on a percentage. State the deposit in dollars as well as percent on the quote.
What's the difference between a progress payment and an invoice at the end?
Cash flow and bargaining position. Stage payments mean you're never more than one stage of work ahead of the money, and a customer who stalls mid-job stalls while work remains — not after you've handed everything over.
Can the customer withhold the final payment over small defects?
That's exactly what defects wording is for: commit to fixing genuine items notified within a set window, while stating that minor defects don't move the final payment's due date. Statutory warranties for residential work still apply on top — this is general information, not legal advice.
Does TradieCue collect the deposit for me?
No. TradieCue drafts quotes that state your payment terms, including the deposit and payment-due days, and drafts follow-up messages when you ask. It doesn't take payments — the money still moves through your normal bank or payment setup.
When should variations be paid?
Decide when the variation is approved, not at the end. The simplest rule that works: approved variations are invoiced with the next progress claim, and a big variation states its own payment terms in the variation document.
Try it on your next job
TradieCue is free to download on the App Store. Say a rough note about a real job and review the draft Timmy produces — nothing is sent until you share it yourself.
Free to download and try. TradieCue Pro is a subscription through Apple: A$24.99/month or A$239.99/year with a 30-day free trial. Apple confirms before any charge.