Deposit limits · Oregon

Oregon Contractor Deposit Rules (2026): No Cap, but Over 50% Carries Risk

Oregon sets no cap on contractor deposits, but taking more than half and then not performing allows license probation. From ORS 701.312.

By Clamp ResearchReviewed by Emmanuel ForgeChecked against the official codesUpdated Oct 20, 2026

Short answer: Oregon has no cap on contractor deposits. The Construction Contractors Board can put a contractor on probation for taking a deposit of more than 50% and then not performing diligently, or not performing and not returning the deposit within 10 days of a reasonable demand. Bills to make 50% a hard cap failed in 2023 and 2025.

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.

Clamp's payment edit sheet for payment 1 of 5, a deposit set to a fixed $1,000 (5.7% of a $17,698.76 proposal), due when signed

Set the deposit

Clamp's proposal payment schedule for a $17,698.76 bathroom remodel: a $1,000 deposit due when signed, stage payments of $7,124.52, $5,678.11 and $3,542.15 due when demolition, tile and carpentry start, and a $353.98 final payment at walkthrough

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

“accepts a deposit of more than 50 percent of the total contract price and”
ORS 701.312, as enacted by HB 3689 (2010) ORS 701.312 (enacting law; the current codified text is being re-read)

The maximum deposit, worked

When an Oregon deposit carries risk
Contract price	How it works out	Maximum deposit
$8,000	More than $4,000, plus failing to perform or refund	No cap
$25,000	More than $12,500, plus failing to perform or refund	No cap
$60,000	More than $30,000, plus failing to perform or refund	No cap

What the rule does

What triggers probation

A deposit of more than 50 percent, and then failing to perform diligently, or failing to perform and not returning the deposit within 10 days after a reasonable demand.

Not a cap

HB 3385 (2023) and HB 3860 (2025) proposed a hard 50% cap. Neither passed.

Oregon deposit questions

Is it illegal for an Oregon contractor to take more than 50% down?

No. It becomes grounds for probation only if the contractor then fails to perform, or fails to refund within 10 days of a reasonable demand.

Compare other states

California: $1,000 or 10%Nevada: $1,000 or 10%Arizona: pools and storm repair All 50 states and DC

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 Oct 20, 2026.

This guide explains what the statutes say. It is not legal advice; for a specific contract, ask a lawyer licensed in your state.