“Is 10 percent normal?” and “Is half down too much?” leave out the first question: what is allowed under the rules for your contract?
Start there. Another homeowner's payment arrangement, especially in another state, doesn't establish what a contractor can request here.
For the owner occupied single family residential contracts covered by NRS 624.970, the general initial deposit limit is $1,000 or 10 percent of the contract price, whichever is less.
There are exceptions for a separate $100,000 consumer protection bond filed with the Board or Board granted relief from the license bond requirement. If a contractor relies on an exception, verify it with the Board.
The after you accept guide explains the contract and payment requirements in more detail. Ask the Board how they apply to your agreement.
Ask what the company will reserve, order or commit to when you pay. Read what happens if the job changes or either side wants to cancel.
Homeowner and contractor accounts in public forum discussions describe deposits for materials, permits, project costs and schedule reservations. There isn't one meaning shared by every business.
Calling a payment a “materials deposit” doesn't explain its cancellation terms or make an otherwise unlawful amount permissible.
Those public discussions include small businesses that can't carry material costs until completion. That explanation deserves a hearing. It doesn't, by itself, prove dishonesty or poor management.
It also doesn't override a legal limit. Check the business, the applicable rule and what both parties are committing to in writing.
Look at what triggers each payment and what work has been completed at that point. A payment tied to a clearly described stage is easier to understand than “money as needed.” Check the arrangement against the applicable progress payment rules, too.
The FTC advises against paying the whole project price upfront. Once you've paid everything, there's no unpaid balance left to tie to completion, even though you may still have legal rights.
If you discuss buying materials directly, settle who selects them, checks compatibility and handles delivery, returns and defects. Don't treat a different payment route as a shortcut around the rules. Keep signed terms and receipts for every payment.