Countertop contracts, deposits and payments: what's standard and what to put in writing

Short answer: Most U.S. residential fabricators ask for about 50% at signing and the balance when the countertops are installed and the customer has walked through the job. The deposit exists because a slab cut to one kitchen has almost no value to anyone else. Some states cap deposits (California limits a home improvement down payment to $1,000 or 10% of the price, whichever is less; Maryland to one-third), so shops must check local law. A good contract names the exact material and slab, the scope, the payment schedule and what triggers each payment, how changes and cancellations are priced, and the warranty. Builders and commercial contractors usually pay on account, often net 30, instead of deposits.

The paperwork in a countertop sale

A countertop job produces a short chain of documents. Each one does a different job, and most disputes happen when one of them is missing.

A signed quote with a price, scope and payment terms can itself be the contract. What matters is that the customer signed a document that says what they are buying. Electronic signatures are as valid as ink for these contracts under the federal E-SIGN Act and the Uniform Electronic Transactions Act, which nearly every state has adopted. Some states also require specific wording in home improvement contracts. The quote side is covered in writing quotes. Layout approval is covered in shop drawings and work orders.

What a countertop contract should include

A shop does not need a lawyer for every job, but it should have its standard agreement reviewed once by a local construction attorney. State home improvement laws differ, and a clause that is fine in Texas may be unenforceable in California.

How much deposit is standard for countertops?

The most common residential structure is 50% at signing and 50% at completion. Shops vary from about 40% to 60% up front, and a few ask for more on rare or special-order stone. A request for 100% before any work, on a normal kitchen, is a red flag for buyers.

The deposit is sized to the shop's risk. Once a slab is cut to your kitchen, the pieces are nearly worthless to anyone else. Engineered quartz and specialty slabs are often bought for the job and cannot be returned to the distributor once cut. Material is roughly a third to half of the job price, so a 50% deposit roughly covers what the shop spends on stone before it sees any more money. The deposit also reserves a template date and production time.

Typical structures by job type:

Deposit by material. Laminate and butcher block jobs often take smaller deposits because the material is cheaper and easier to reuse. Rare quartzite, bookmatched marble and other stone costing thousands per slab justify the higher end of the range.

State limits on deposits

Several states limit what a contractor may collect from a homeowner before work starts. As of September 2026:

• California: a licensed contractor on a home improvement contract may take a down payment of no more than $1,000 or 10% of the contract price, whichever is less. Later payments may not exceed the value of work done or materials delivered, and the contract must list a payment schedule in dollars and cents. Contractors with a registrar-approved bond are exempt from these limits (Business and Professions Code 7159 and 7159.5). A written contract is required when the job exceeds $500. The Contractors State License Board (cslb.ca.gov) publishes guidance.

• Maryland: a home improvement contractor may take a deposit of no more than one-third of the contract price, and no payment before the contract is signed (Business Regulation 8-617).

• Florida: a contractor who takes more than 10% up front on residential work must apply for any needed permits within 30 days and start work within 90 days after permits are issued, unless the homeowner agrees in writing to a longer period (Statute 489.126).

Other states have their own home improvement rules on contract content, escrow of deposits or licensing. Many place no percentage cap at all. A California shop cannot run the usual 50/50 schedule on a homeowner job unless it has the bond exemption. These rules generally apply to contracts with homeowners, not to a shop's subcontract with a general contractor. Check your state's contractor licensing agency or attorney general's office.

The right to cancel

Under the FTC's Cooling-Off Rule, a customer can cancel within three business days a sale of $25 or more made at their home, and the seller must give written notice of that right. It does not apply to contracts signed at the shop's showroom, sales that follow negotiations during a visit to the showroom, or sales done entirely by phone or mail. A countertop contract signed at the kitchen table after an in-home consultation, with no showroom visit, is likely covered. Many states have parallel rules. California requires a three-business-day cancellation notice (five for customers 65 and older) on home improvement contracts signed away from the contractor's office.

The practical rule for shops: if you sign contracts in customers' homes, use the required cancellation notice and do not order material or schedule the template until the cancellation period has passed.

Cancellations and refunds

Outside the legal cancellation window, refunds follow what the shop has spent. The contract should state the stages. A common schedule:

If the shop cancels without cause, state law usually requires it to refund the deposit. For buyers, paying a deposit by credit card gives some protection if a shop goes out of business, because card networks allow disputes for goods or services not delivered. Money paid by check or cash to a failed business is usually lost.

Change orders

A change order is a signed amendment to the contract that describes a change in scope, its price and its effect on the schedule. Every change after signing needs one, including changes that cost nothing.

It helps to separate three situations:

• Template correction: the template shows the real kitchen is a little different from the quote measurements. The shop adjusts the price to the measured square footage under the contract's pricing basis. Tell the customer in writing before cutting.

• Change order: the customer or contractor changes the scope. A new edge, a different sink, an added piece.

• Separate add-on: a new, separate piece of work, such as a laundry top added later. It gets its own quote rather than being folded into the original job.

The real point of no return in most shops is not the saw. It is when the job is programmed for the CNC or the slab is pulled and laid out, sometimes within a day or two of the template. After that, changes cost money. Informal ranges shops use:

To keep change orders under control:

1. Lock the details before the template. Send the customer a checklist a few days ahead: sink model and mount, faucet holes, cooktop or range model, edge per surface, slab choice, splash height, any special cutouts. Delay the template if these are not confirmed.

2. Write every change down before doing it. Describe original and new scope, the price difference, and the schedule effect, and get a signature. If the customer will not sign, work continues on the original scope.

3. Define "production has started" in the contract, usually when the job goes to CNC programming, and state what changes cost after that.

4. Route changes through whoever holds the contract. On a contractor job, the homeowner's request goes to the contractor for approval, not straight to your shop floor.

5. Bill every change. The paperwork can be free. The work should not be.

A typical residential kitchen has zero to two change orders. Frequent change orders usually mean the sales consultation missed details.

Collecting final payment

The trigger for the final payment should be written as completion and walkthrough, not "when the crew leaves." A customer who has seen and accepted the work pays willingly. A customer asked to pay before looking will find something to hold money back for.

The sequence that works:

1. The crew finishes, cleans up and checks the job.

2. The lead installer walks the customer through seams, edges, the sink and overhangs, and explains care. The walkthrough itself is described in common problems and callbacks.

3. The customer signs a completion form, listing any open punch-list items.

4. The installer presents the final invoice, with the deposit and any change orders already shown, so nobody is doing math on the doorstep.

5. The customer pays on site, by card, check or bank transfer, or through a link sent the same day.

On larger jobs, a small holdback for a genuine punch-list item (for example the last 10% until a chipped edge is repaired within a few days) is reasonable and keeps the relationship intact. Write the holdback amount and the item on the completion form.

When a customer won't pay

• Talk first. Most withheld payments are about a specific complaint. Find out what it is and whether it is fixable.

• Put it in writing. A dated demand letter that states the amount, the invoice and a deadline.

• Do not remove installed countertops. Taking back stone from a customer's home can expose the shop to trespass and property-damage claims.

• Use lien rights. A mechanic's lien is a legal claim against a property for unpaid work or materials that improved it. Every state has one, but the notices and deadlines are strict and vary. Some states require a preliminary notice early in the job, and the lien itself usually has to be recorded within about 60 to 120 days after the work is finished. In California, a direct contractor generally must record within 90 days of completion, or 60 days after the owner records a notice of completion. Missing a deadline can end the right entirely, so put the dates on the calendar at the start of every job.

• Small claims court handles smaller balances without a lawyer. Limits range from about $2,500 to $25,000 depending on the state, with many around $5,000 to $10,000.

• Collections or an attorney for larger amounts.

Payment methods and card fees

Surcharges and cash discounts. A shop can pass card costs on in two ways. A surcharge adds a fee for paying by credit card. Card network rules cap it (Visa at 3% of the transaction), require notice to the card processor and clear disclosure to the customer before payment, and forbid surcharging debit and prepaid cards. A few states ban or limit surcharges, and the rules change, so check with your processor and state before adding one. A cash discount, a lower price for paying by check or bank transfer, is broadly allowed. Either way, state it in the contract, not at the door on install day.

Invoicing and keeping receivables under control

A countertop invoice should show the job and address, each billed line or the contract total, change orders as separate lines, sales tax, deposits and payments already received, and the balance due with the due date and ways to pay. Sales tax rules for countertops differ by state (some treat installed countertops as part of real property, some tax materials only), so ask your accountant how your state treats them.

Habits that shorten the time between install and money in the bank:

• Send the invoice the day of the install, with a payment link, not at the end of the month.

• Apply deposits and credits to the job they belong to, so the final invoice is right the first time.

• Review aged receivables (unpaid invoices grouped by how overdue they are) every week. Most residential balances should be paid within days. Contractor invoices should mostly be inside their terms, and anything past 60 days needs a phone call, not another email.

• Stop quoting new work for accounts that are far behind until they catch up.

Keep contracts, approvals, change orders and payment records for years, not months. The IRS generally expects business records kept at least three years and longer in some cases, many shops keep them seven, and defect claims on residential construction can come years after install in some states. See jobs, documents and communication.

Customer financing

Many homeowners pay for countertops from savings, but on a kitchen above a few thousand dollars, a monthly payment option can decide whether the job happens this year.

Options a homeowner has:

Deferred interest, worked example. A homeowner puts a $4,500 kitchen on a 12-month deferred-interest plan at about 27% APR and pays $292 a month. After 12 months, $1,000 is still owed. Because the deadline was missed, the lender adds the interest that built up all year on the declining balance, roughly $700 to $750, on top of the $1,000. A true 0% plan (with no deferred interest) would add nothing.

How point-of-sale financing works for the shop. The shop signs up as a merchant with a consumer lender. Wisetack, GreenSky, Synchrony and Service Finance are common in home improvement, and Hearth is a marketplace that shops several lenders. The customer applies, often from a text link. The lender makes the credit decision and pays the shop the financed amount minus a merchant fee (also called a dealer fee), usually within a few business days of the job being marked complete. The customer repays the lender. The shop is not the lender and usually carries no credit risk.

The merchant fee depends on the plan. Standard interest-bearing plans often cost the shop about 2 to 5%. Promotional 0% plans cost the most, often 6 to 12% or more for longer terms, because the shop is paying the customer's interest. On an $8,000 job financed on a 12-month 0% plan at a 7% fee, the shop receives $7,440.

Rules for offering financing well:

• Offer it, don't push it. Running cash-ready customers through financing just costs you the fee.

• Do not raise the price to cover the fee. Charging financed customers more than cash customers usually breaks the lender's merchant agreement. Build financing costs into your normal pricing if you offer it widely.

• Let the lender do the credit talk. Staff should hand over the lender's application and disclosures and not promise rates or approvals. Federal lending disclosure rules apply to how credit is described.

• Tie approval to the signing. Present financing with the total, and sign the contract in the same meeting, so an approved customer does not take the approval shopping.

• Book the fee as a financing expense, and track financed jobs separately to see whether the fees are paying off in closed jobs.

Builders, contractors and commercial jobs

Trade customers rarely pay deposits. They pay on terms, commonly net 15 to net 30 for general contractors and sometimes net 45 to 60 for production builders, often timed with their own draw from the owner or lender. That makes the fabricator a lender for a month or two, so:

• Take a credit application and set a credit limit before extending terms. Ask new or unproven contractors for a deposit on their first few jobs.

• Get a signed purchase order or subcontract before buying special material.

• Know your lien deadlines and send preliminary notices where your state requires them. On a subcontract, lien rights are often the only real security.

• Expect commercial subcontracts (often based on AIA forms) to hold back 5 to 10% retainage until the project is substantially complete, and to require submittals, insurance certificates and pay applications. Have an attorney read the indemnity and payment clauses the first time.

• Many states have prompt-payment laws requiring contractors to pass payments down to subcontractors within a set number of days after they are paid.

More on trade relationships is in working with builders and contractors.

For homeowners: what to check before you pay

1. The contract names your exact material, color, thickness and, for natural stone, the slab you picked.

2. The payment schedule says what triggers each payment. The final payment should be due at completion after you inspect the work, not before installation starts.

3. The deposit is within your state's limit, if it has one, and you get a written receipt.

4. You pay the business, not an individual, and preferably not in cash.

5. The contract explains how the price can change after templating and how change orders work.

6. The cancellation terms are written down. If a salesperson signed you up at home, you should receive a notice of your right to cancel.

7. The workmanship warranty is in writing, with what it excludes.

8. If you finance, you know whether the plan is true 0% or deferred interest, and what happens if a balance remains when the promotion ends.

More vetting advice is in choosing a fabricator.

Common mistakes

• Starting work on a verbal "yes." Verbal agreements are nearly impossible to prove. Get the signature before ordering stone.

• Collecting the balance before the walkthrough. It invites withheld money and bad reviews.

• Using a 50/50 schedule where state law does not allow it.

• Letting change orders stay verbal until the invoice, when the customer disputes them.

• Missing a lien notice deadline on a contractor job, then discovering the right is gone.

• Adding a card surcharge at the door that was never in the contract.

• No receipt for deposits. Both sides need proof of what was paid.

Where software helps

Payment problems usually come from paperwork that lives in different places. In Stonify, the accepted quote becomes the deal, and sales orders and change orders are generated from it with numbers tied to the project (the second change order on project #2417 is #2417-3, for example). Payment terms can carry a default deposit percentage, and with the Stripe or Nuvei integration a sales order or change order can go out with a payment link and QR code pre-filled at that deposit. Payments made on a project are linked to it and applied to the final invoice automatically. Project filters for Deposit Present and Signed Sales Order show which jobs are not ready to schedule. The installer app can show the crew the invoice and balance due at the walkthrough, Aged Receivables can be viewed by salesperson, and a sales restriction can block new quotes for a customer with overdue invoices.

FAQ

Is a 50% deposit normal for countertops? Yes, it is the most common residential structure. The exceptions are states with deposit limits, such as California and Maryland, and trade accounts that pay on terms.

Why won't the fabricator refund my deposit after the template? The template visit, drawing and often the slab purchase have already cost the shop money. Most contracts refund the deposit minus those costs, and nothing once cutting starts. Check your contract's cancellation section.

Can a fabricator charge more after templating? If the contract prices by measured square footage, the total can go up or down to match the template. Small changes are normal. Any increase should be explained in writing before cutting.

Should I withhold final payment if something is wrong? Withhold only an amount that matches the specific problem, put the problem in writing, and pay the rest. Withholding the whole balance over a small issue can lead to a lien on your home.

Does the three-day right to cancel apply to countertop contracts? It applies when the contract is signed at your home after an in-home sales visit, not when you sign at the shop's showroom. Some states add their own cancellation rights.

Do I have to pay the installer or the company? Always pay the company named on the contract, even if the installer is a subcontractor, and get a receipt.