Massachusetts Contractor Deposit Limit (2026): One Third or Special Order
The most a Massachusetts home improvement contractor can take up front, quoted from G.L. c.142A and worked with and without custom materials.
Not legal advice. General information from each state's statutes, checked Oct 20, 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
“Any deposit required under the contract to be paid in advance of the commencement of work under said contract shall not exceed the greater of one-third of the total contract price or the actual cost of any materials or equipment of a special order or custom made nature, which must be ordered in advance of the commencement of work, in order to assure that the project will proceed on schedule.”
The maximum deposit, worked
| Contract price | How it works out | Maximum deposit |
|---|---|---|
| $8,000 | One third, with no special order | $2,666.66 |
| $25,000 | One third, with no special order | $8,333.33 |
| $25,000 | With $10,000 of custom cabinets: the greater of $8,333.33 or $10,000 | $10,000 |
| $60,000 | One third, with no special order | $20,000 |
Who it covers and the penalty
Covers
Agreements over $1,000 with the owner of a pre-existing owner-occupied building with 1 to 4 dwelling units. Ground-up new homes fall outside the chapter.
Greater of, not plus
The special-order cost replaces one third when it is larger. It is not added on top, which is the Pennsylvania rule.
The penalty
A violation is an unfair or deceptive act under chapter 93A (s.17). Knowing and willful violations carry a fine of up to $2,000, up to one year in jail, or both (s.19).
Massachusetts deposit questions
Is it one third plus the cost of materials?
No. It is whichever is greater: one third of the price, or the actual cost of special-order or custom materials that must be ordered before work starts.
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.