Deposits, draws, and never paying all cash up front

They want money today to “hold the crew.” Materials are scarce. You’ve heard that sentence on every wet street in Harris County.

A reasonable deposit against a written scope is how local shops buy fans and pay people. Paying the whole job up front in cash is how you fund someone else’s next zip code.

Keep a paper trail even if you like them.

Do this now

Don’t pay the full price before work starts. Don’t pay all cash.
Put the deposit amount, what it covers, and the start date in the contract.
Pay draws after you can see the work that draw was for.
Use a check or card that shows the company name, not a personal name on a torn deposit slip.
Photograph receipts and load them into the same folder as the claim.

What “reasonable” looks like when everyone is desperate

There’s no magic percentage that fits every job. There is a smell test. If the number is most of the job and they haven’t pulled a single wet pad, that’s not materials. That’s a bet you’ll never see them again. After Harvey-style events, Houstonians often report cash deposits that bought a disappearing act. Ask what the deposit buys by Friday, in writing.

Draws that protect both of you

Demo done, then a draw. Dry-in done, then a draw. Final clean, then the rest. Walk the house before you release money. If they want the next check because “the supplier needs it this afternoon,” go with them or pay the supplier yourself. Don’t hand a stranger a stack because the story is loud.

Cash, Venmo, and the cousin’s account

If they insist on cash only, that’s a no. If they want payment to a personal app under a different name, that’s a no. If your insurer will pay by check, don’t cash it and convert the whole thing into bills. You may need that trail when a mechanic’s lien shows up later.

Verify live. Status changes hourly. Match every payment to a signed scope line. If the name on the account isn’t the name on the license, stop.

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