You’ve compared quotes, chosen your painter, and now someone’s asking for a deposit. What’s a reasonable amount? What should be in writing before you hand anything over? For most homeowners this is the part of the process that feels the least defined, and it’s where the most avoidable disputes begin.
NSW has clear rules about written contracts and deposit limits for residential painting work, but they’re not widely understood. Any residential painting work valued at over $5,000 requires a written contract, signed by both parties before work starts. For jobs between $5,000 and $20,000, the maximum deposit a contractor can legally request is 10% of the contract price, and progress payments should be tied to defined stages of completed work rather than calendar dates or material requests. Cash-only demands and large upfront deposits are warning signs worth taking seriously.
If you’re ever unsure, you can verify current thresholds and requirements directly with NSW Fair Trading before signing anything.
When Is a Written Contract Required?
Under the NSW Home Building Act 1989, a written contract is required for all residential building work, which includes painting, valued at over $5,000. The contract must be signed by both parties before any work begins. This is a legal requirement that can’t be skipped or substituted with an email chain and a verbal agreement.
For work under $5,000, a written agreement isn’t legally required, but it’s definitely best practice. A simple document that captures the scope of the job, the products being used, and the agreed price and payment terms gives both you and your painter something to look back on if disputes come up. A proper contract will save you plenty compared to the cost of a disagreement.
If a painter is resistant to putting anything in writing, that alone is worth factoring into your decision.
What a Painting Contract Should Include
A written contract for painting work needs to be specific enough to be useful. A document that says “paint interior of house = $8,500” is technically a written contract, but it’s practically worthless if anything is disputed.
Scope of work
The contract should name every surface being painted and any surfaces that are specifically excluded. Vague scope is where disputes start. A surface that one party assumed was included and the other assumed wasn’t is an argument waiting to happen.
Paint products
The brand, product line and sheen level should be named in the contract, not just the quote. If the contract doesn’t specify the product, the quote’s commitments about what’s being applied aren’t enforceable once the job starts. See our guide to what a painting quote should include for more on why this detail counts.
Number of coats
The number of coats should be specified per surface, not as a single figure for the whole job. Different surfaces might need different numbers of coats, and having it in writing means there’s no ambiguity about what was agreed.
Timeline
The contract should include an expected start date, an estimated duration, and a plan for handling delays. The best-written contract in the world can’t predict the weather, but it can include a clause on how weather delays are communicated and managed to avoid frustration on both sides.
Payment stages
Each payment should be tied to a defined milestone, such as completion of prep, first coat, second coat, and final sign-off. Payment stages tied to completions give you clear visibility over progress.
Inclusions and exclusions
The contract should list what’s in scope and what isn’t. Common exclusions worth confirming in writing include furniture moving, rubbish removal, and any surfaces not explicitly named in the scope.
Variation process
Maybe your painter finds a section of rotting timber that wasn’t visible until the paint was stripped back. If that’s the case, having a contract that specifies the variation process upfront can save a lot of time and headaches and prevent any nasty surprises.
Painting Deposits
NSW law sets a clear ceiling on deposits for residential building work. For jobs between $5,000 and $20,000, the maximum deposit a contractor can legally request is 10% of the contract price. For work over $20,000, the cap is still 10%, but deposit and payment rules can change, so it’s worth confirming current limits directly with NSW Fair Trading before signing.
A request for 30%, 50% or more upfront isn’t reasonable, and in some cases it might not even be legal. Large deposit demands should be treated as a big red flag, since they often correlate to other problems like no licence, no insurance, and a business model that depends on collecting money before delivering results.
For a full breakdown of what to look for when vetting a painter before the contract stage, our guide to hiring a licensed and insured painter in NSW covers licensing, insurance and the right questions to ask.
How Should Progress Payments Work
Some larger painting jobs can be paid in stages rather than as a single lump sum at the end to give the painter cashflow to manage the job and the homeowner a natural checkpoint at each stage.
Progress payments should be tied to defined stages of completed work: deposit on signing, a payment on completion of prep, a payment on completion of the first coat, and a final payment on completion and sign-off. Not “payment due Friday” and not “payment required before we can order materials.” Each milestone should be named in the contract so both parties know exactly what completed work looks like before the next payment is released.
If a painter requests a progress payment before the agreed milestone is reached, it’s reasonable to ask what’s been completed and compare that against the contract. A professional operator will be able to answer that question clearly.
If Something Goes Wrong
If the finished work doesn’t match what was agreed, a written contract is the document that defines what was agreed
Without it, a dispute becomes one party’s word against the other’s.
If a dispute arises, NSW Fair Trading offers a free complaint and mediation service for residential building work. It’s not a guaranteed resolution, but it’s a formal avenue that’s available when direct negotiation between the parties hasn’t resolved the issue. Working with a licensed and insured painter from the start with a proper contract in place is the best way to avoid needing it.
Agree It Before the Work Starts
Here at George.Painting, our team operates with written contracts, standard payment terms, and straightforward deposit arrangements on every job. If you’re in Newcastle or Lake Macquarie and want to talk through a project with a team that does things by the book, get in touch.
For current information on NSW home building contract requirements and deposit limits, always check directly with NSW Fair Trading. Rules and thresholds can change, and this guide reflects our understanding at the time of writing