How much deposit can a flooring installation contractor ask for in Michigan?

Michigan has no statutory cap on contractor deposits. No specific statutory cap. Industry-standard 10–25% applies. For flooring installation, industry standard is 25% — meaning on a $20,332 project, expect $5,083 max. Any request above $6,710 is a red flag.

Industry standard for flooring installation: 25%. Material-heavy job with short labor time. 25–33% deposit is common to cover material orders. Most legitimate Michigan contractors will follow this norm regardless of whether the state has a statutory cap.

Michigan doesn't have a statutory cap, but industry-standard deposits sit between 10–25% for most flooring installation projects. A request above 33% is a strong signal of cash-flow problems (the contractor is funding earlier jobs with your money) or outright fraud risk. Get 2 more written quotes before signing anything.

Best practice in Michigan: 25% deposit at contract signing → milestone-based progress payments tied to inspectable phases (rough-in, mid-build, substantial completion) → 5–10% retention held until punchlist + final inspection sign-off. Never pay materials in full upfront; if your contractor goes under, the materials supplier owns those goods, not you. Pay via check or credit card — never wire transfer to a personal account.