Deposit, change orders and getting paid: protecting yourself as a contractor

You did the work. The client is happy — mostly. But there is the extra outlet they asked for on day two, the rotten plywood nobody could see, and now the final invoice is "higher than the quote" and the last cheque is slow. None of this is about workmanship. It is about three documents: the deposit terms, the change order, and the acceptance record.

This article covers what to write, when to write it, and how to keep the paper trail without slowing the job down. It reflects common practice for small residential and light commercial contractors in Atlantic Canada and Quebec; rules on deposits, liens and consumer contracts vary by province, so check yours (and a lawyer or your association) for the details that matter to your business.

Part 1 — The deposit

Why you ask for one

A deposit does two things: it funds materials you have to buy before you start, and it confirms the client is serious. Both are legitimate. What loses clients is a deposit that looks arbitrary.

How much

Common practice for residential trades:

• Small jobs (under a few thousand dollars): 0–25%. Many electricians and plumbers skip it entirely and bill on completion.
• Material-heavy jobs (roofing, kitchens, interlock): 20–35%, explicitly tied to the material order.
• Custom or special-order items (windows, cabinets, EV chargers the client selected): the cost of the item, since you cannot return it.

Some provinces cap deposits for certain consumer contracts, and Quebec has specific rules for contracts signed at the client's home. If in doubt, keep the deposit tied to real, documented costs — that is both fair and defensible.

How to write it

Bad: "Deposit required."

Good: "30% deposit ($1,245.45) due at signature to order the panel and EV charger. Balance ($2,906.05) due on completion after electrical inspection. Payment by e-transfer, cheque or card."

Three things make this work: a percentage and a dollar amount, a reason, and a trigger for the balance ("after inspection", "on completion", "within 7 days of the final walkthrough").

If the client cancels after paying the deposit

Say it in the terms before it happens: "If the client cancels after materials are ordered, the deposit covers non-returnable materials and restocking fees; any remainder is refunded within 10 days." A clause like this is fair, it is easy to enforce because it is tied to real costs, and it avoids the two bad outcomes — keeping a deposit you cannot justify (and getting a chargeback or a complaint), or refunding money you have already spent at the supplier. Keep the supplier invoice; it is your proof.

Part 2 — Change orders

The rule

Any change in scope gets a written change order before the work is done. Not after. Not "we'll sort it out at the end." The change order is a mini-quote: what changes, how much, and the client's approval.

It sounds bureaucratic. In practice it takes two minutes and it is the single best protection you have, because the disputes always start the same way: "I didn't know it would cost extra."

What a change order contains

• A number that references the original quote: QTE-0042-CO-01.
• The description of the added or removed work, with quantities.
• The price of the change — positive or a credit if the client removes something.
• The new contract total: original accepted amount + all approved change orders.
• Approval: the client's name, the date, and their consent (a signature or an explicit online acceptance).

Worked example: the roofing job

Original accepted quote: roof replacement, $19,682.25 including HST.

On tear-off, four sheets of plywood are rotten. You told the client in the exclusions that plywood was not included and would be billed at $95 per sheet with a photo. You send:

| Change order QTE-0042-CO-01 | Qty | Price | | --- | --- | --- | | Replacement of rotten roof sheathing (photos attached) | 4 sheets | $380.00 | | HST 15% | | $57.00 | | Change order total | | $437.00 | | New contract total | | $20,119.25 |

The client approves it from their phone before you close the roof. The final invoice matches the contract total to the cent, and there is nothing to argue about.

Now the counter-example: you replace the plywood, mention it in passing, and add $437 to the final invoice. Half your clients will pay without a word. The other half will remember the number they signed and feel cheated — and they are the ones who leave reviews.

Credits are change orders too

The client decides they do not want the chimney flashing after all? Issue a change order with a negative amount ($425 credit) and a new contract total. It shows you are fair, and it prevents the "you charged me for the flashing" conversation later.

Part 3 — Getting paid

Invoice against the contract, not against memory

Your final invoice should read: original quote + approved change orders − deposit received = balance due. If those documents exist, the invoice writes itself and the client recognizes every number.

Progress payments on longer jobs

For anything over a week or two, bill in stages tied to milestones ("rough-in complete", "before drywall", "final"), not to calendar dates. Milestones are visible to the client; dates feel arbitrary.

When payment is slow

In order:

1. A polite reminder with the invoice attached, three to five days after the due date.
2. A phone call. Most delays are disorganization, not refusal.
3. A written notice referencing the signed quote, the approved change orders and your payment terms.
4. Your provincial remedies. Every province has a construction lien (or, in Quebec, legal hypothec) regime for unpaid work on real property, with strict deadlines — often counted in weeks from the last day of work. Learn the deadline for your province before you need it, because missing it usually means losing the remedy.

The pattern is obvious: every step is easier when the paper trail exists. A dated quote acceptance, numbered change orders with approvals, and clear payment terms turn "he says, she says" into "here is what you signed."

The five documents, in order

1. The quote — itemized, with terms and exclusions, valid 30 days.
2. The acceptance — the client's name, date and consent on the final version.
3. The deposit receipt — amount, date, what it funds.
4. Change orders — numbered, priced, approved before the work.
5. The invoice — contract total minus deposit, referencing all of the above.

How Devik handles this

In Devik, the client accepts the quote online with a dated electronic signature and consent — the acceptance record is kept with the quote. On an accepted quote, you create change orders with added lines or credits, numbered against the quote (SOU-0042-OC-01), priced with the same rules and taxes; the client approves them from the same kind of link, and the contract total (quote + accepted change orders) is always visible. Deposit and payment terms live in the quote's conditions, in the client's language.

None of this replaces knowing your province's rules on deposits and liens. It replaces the notebook, the texts and the "I thought you said" — which is where most of the money is lost.

For the quote itself, start with How to write a construction quote that wins the job. For a real example in your trade: electricians, plumbers, roofers, painters, landscapers.