DC Home Improvement Deposit Rules (2026): Only Licensed Contractors Can Take Payment Before Completion
The District sets no deposit percentage, but only a licensed home improvement contractor can take any payment before the job is complete, and only under a written contract. From 16 DCMR 800 and 808.
Not legal advice. General information from each state's statutes, checked Oct 28, 2026. Local rules and the facts of your contract can change the answer; for a specific contract, ask a lawyer licensed in your state.
Set the deposit
Every payment tied to a stage
The deposit and payment schedule in the Clamp app: a $1,000 deposit due when the customer signs, then every other payment tied to a stage of the job. $1,000 on this $17,699 bathroom is under every state's cap. Sample data.
What the law says
“No person shall require or accept any payment for a home improvement contract”
The maximum deposit, worked
| Contract price | How it works out | Maximum deposit |
|---|---|---|
| $8,000 | Licensed contractor with a written contract: no cap. Unlicensed: nothing before the work is complete | No cap if licensed; $0 if not |
| $25,000 | Licensed contractor with a written contract: no cap. Unlicensed: nothing before the work is complete | No cap if licensed; $0 if not |
| $60,000 | Licensed contractor with a written contract: no cap. Unlicensed: nothing before the work is complete | No cap if licensed; $0 if not |
Who it covers and the exceptions
Covers
Home improvement contracts for $300 or more, including repeat contracts with the same homeowner totaling $300 in 12 months, on single-family or two-family dwellings (16 DCMR 899.1).
Written contract first
No payment may be accepted until the agreement is reduced to a written contract that complies with section 808 (16 DCMR 808.1).
Payment terms
Each contract must describe the terms of payment and approximate start and completion dates (16 DCMR 808.10).
Rejection refund
If the contractor rejects a signed contract, any payment must be returned with the notice of rejection (16 DCMR 808.8).
District of Columbia deposit questions
Is there a maximum deposit in DC?
No. DC sets no percentage. The control is licensing: an unlicensed contractor may take no payment before full completion (16 DCMR 800.1).
What happens if an unlicensed contractor takes a deposit?
DC courts have treated the contract as void and unenforceable by the contractor, who must return payments received; the opinions cite Cevern, Inc. v. Ferbish and Nixon v. Hansford. A violation can also be pursued under the DC Consumer Protection Procedures Act.
Compare other states
How we checked
We read each state's statute or licensing rule on the official legislature or agency site and quote it as written. Where the official site would not load, the row says so and names the copy we read. A state stays "still being checked" until we have read the full rule; we never mark it "no cap" before then. Last checked .
This guide explains what the statutes say. It is not legal advice; for a specific contract, ask a lawyer licensed in your state.