Upfront deposit clauses, explained
A portion of the fee paid before work begins. It funds your work-in-progress and filters out clients who will not ultimately pay.
Market standard
25% to 50% of a fixed-fee project on signature, with the balance tied to milestones or delivery. Retainers are paid in advance each month.
Red flags
- Zero upfront payment on a large fixed-fee build
- Deposit is fully refundable for any reason, including client convenience
- First payment only after final delivery and acceptance
Suggested wording
The Client shall pay a non-refundable deposit of 40% of the Project Fee on execution of this Agreement. Work will not commence until the deposit is received. The deposit is applied against the final invoice.
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Review my contractIs this normal in…
- Upfront deposit in a design services agreement?
- Upfront deposit in a software / web development agreement?
- Upfront deposit in a video production agreement?
- Upfront deposit in a consulting agreement?
- Upfront deposit in a marketing services agreement?
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