North Dakota Contractor Deposit Rules (2026): Abandoning a Paid Job Is a Felony
North Dakota sets no cap on contractor deposits, but willfully abandoning a job after taking payment is a felony graded by the amount. From N.D.C.C. 43-07-02.
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
“The person willfully abandons a construction project after receiving payment for services or materials”
The maximum deposit, worked
| Contract price | How it works out | Maximum deposit |
|---|---|---|
| $8,000 | Payment under $10,000 | Class C felony if abandoned |
| $25,000 | Payment of $10,000 to $50,000 | Class B felony if abandoned |
| $60,000 | Payment over $50,000 | Class A felony if abandoned |
When it applies
When it counts as abandoned
Not starting within 60 days of a start date agreed in writing, or within 90 days of the contract date if none was agreed; not finishing within 90 days of an agreed completion date, or 180 days of the contract date.
The defense
Returning all unearned payment before charges are filed, unless suppliers went unpaid.
Licensing
A license is required on jobs over $4,000, and abandoning a job after a deposit or failing to refund an advance payment are grounds for a complaint.
North Dakota deposit questions
What happens if a North Dakota contractor takes a deposit and never starts?
Willfully abandoning a job after payment is a felony, graded by the amount paid, unless all unearned payment is returned before charges are filed and suppliers were paid.
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.