Is upfront deposit normal in a design services agreement?
For a fixed-fee design services agreement, a 25-50% upfront deposit is normal and expected. A build with no deposit shifts all the non-payment risk onto the freelancer and should be renegotiated.
What’s market-standard
25% to 50% of a fixed-fee project on signature, with the balance tied to milestones or delivery. Retainers are paid in advance each month.
Warning signs
- Zero upfront payment on a large fixed-fee build
- Deposit is fully refundable for any reason, including client convenience
- First payment only after final delivery and acceptance
Wording you can send
The Client shall pay a non-refundable deposit of 40% of the Project Fee on execution of this Agreement. Work will not commence until the deposit is received. The deposit is applied against the final invoice.
Check your actual contract
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Review my contractWhat it means for you
A portion of the fee paid before work begins. It funds your work-in-progress and filters out clients who will not ultimately pay.
Not legal advice. Gig Clause is software, not a law firm or a professional service, no attorney reviews, drafts, or is otherwise involved in anything it produces. It automatically highlights common contract issues and suggests negotiation language. Using it does not create an attorney-client relationship. For decisions with significant financial or legal consequences, consult a qualified attorney licensed in your jurisdiction. Clause standards vary by industry and location and change over time.