Quote expiration dates and deposit rules

Why every quote needs an end date

A quote without an expiration date can be pulled out of a drawer six months later, after your supplier prices, labor rates and schedule have all changed. Customers are not being unreasonable when they expect you to honor it; nothing on the paper told them otherwise. An expiration date solves that, and it gives the customer a clear decision window and you a natural reason to follow up.

Costs are moving fast enough to matter. The Producer Price Index for final demand rose 6.3% in the twelve months to September 2026 before seasonal adjustment^[1]. A quote built on last quarter’s supplier prices can be underwater by the time a customer signs it.

Expiration wording that works

Keep it to two sentences on the quote, near the total, not in the fine print.

• Standard: “This quote is valid until [date]. After that date we will confirm current pricing and availability before scheduling.”
• Equipment-heavy: “Equipment prices are valid until [date] and are subject to manufacturer price changes after that date.”
• Long-lead jobs: “Pricing is valid for jobs scheduled to start before [date]. For later start dates, see the material price terms below.”
• Seasonal offer: “Spring scheduling price valid for agreements signed by [date].”

Choose the window by job type: short for quotes dominated by equipment or volatile materials, longer for labor-heavy work. Use the same window for the same job type every time, so your office does not have to remember exceptions. For long jobs, combine the expiration date with a narrow material clause, as described in protecting margin when material costs rise.

When a deposit makes sense

The test for any deposit is whether it covers a real cost or risk you take on when the customer says yes. Size matters too: in 2025, 63% of US adults said they would cover a $400 emergency expense completely with cash or its equivalent^[3], so a large up-front demand can stop a willing customer from signing at all. Deposits that do are easy to explain. Deposits that do not, such as a large up-front payment on a small job, make customers suspicious, especially in trades where some companies have taken deposits and disappeared.

State rules on deposits and contracts

Deposit rules are mostly set by states, and they vary. Some states cap the down payment a home improvement contractor may collect, require specific contract language about it, or limit progress payments to the value of work completed and materials delivered. Some also require written contracts with particular notices above a dollar threshold.

1. 01

   Find your state’s rules

   Check your state contractor licensing board and consumer protection office for home improvement contract requirements.

2. 02

   Check local rules

   Some cities and counties license home improvement contractors separately and add their own requirements.

3. 03

   Write a standard deposit policy

   One policy per job type, within the state limits, with refund terms.

4. 04

   Put it in the contract template

   Deposit amount or percentage, what it covers, when it is refundable and how quickly refunds are paid.

5. 05

   Have it reviewed

   Ask a local attorney to review your template once, and again when laws change.

The FTC Cooling-Off Rule and in-home sales

If you sell in the customer’s home (an HVAC system at the kitchen table, a roof after an inspection), federal rules may apply on top of state law. The FTC’s Cooling-Off Rule gives buyers in many home sales a right to cancel for a full refund until midnight of the third business day after the sale; the FTC’s consumer guidance excludes only very small sales, such as those under $25 made at the buyer’s home^[2]. The seller must give the buyer two copies of a cancellation form along with a dated contract or receipt that explains the right to cancel^[2].

There are exceptions. The same guidance says the rule does not cover sales needed to meet an emergency, or sales made because the buyer asked the seller to visit to repair or perform maintenance, though items bought beyond that request are still covered^[2]. If your techs sell replacement equipment during repair visits, treat that sale as covered unless your attorney tells you otherwise. For the selling side of in-home visits, see presenting estimates at the kitchen table.

• Do not start non-emergency work or order special equipment until the cancellation period has passed, unless an exception clearly applies.
• Refund deposits promptly if a buyer cancels within the window.
• Keep signed copies of the cancellation notice with the contract.

Refund terms customers can understand

Spell out what happens to a deposit in each situation before the customer pays it. Ambiguity here produces the angriest calls and reviews.

1. Customer cancels within any legal cancellation period: full refund.
2. Customer cancels before materials are ordered: refund, minus any stated non-refundable amount your state allows.
3. Customer cancels after special-order materials are ordered: refund minus the documented cost of non-returnable items.
4. You cannot perform the job: full refund.
5. Refund timing: state the number of business days and the method.

Electronic quotes and signatures

Most quotes are now sent and signed online. Federal law supports this: the E-SIGN Act says a signature, contract or other record relating to a transaction may not be denied legal effect solely because it is in electronic form^[4]. Where a law requires information to be given to a consumer in writing, an electronic record can satisfy it only after the consumer has consented and received specific disclosures^[4]. Use a quoting or e-signature tool that records the time, the signer and the version of the quote they accepted.

Example: a deposit policy for a three-trade company

Example: a fictional HVAC, electrical and garage door company writes one policy. Service repairs: no deposit, paid at completion. Special-order parts: a deposit equal to the part cost, non-refundable once ordered, with the part number on the quote. Equipment installs: a deposit within the state limit at signing, with the balance due at completion, and no equipment ordered until any cancellation period has passed. Every quote carries a 30-day expiration date, and equipment quotes 15 days. The office reads the same three sentences on every call that asks about deposits.

Follow up before the date, not after

An expiration date is only useful if someone acts on it. Set a reminder for every open quote a few days before it expires and call, rather than email, to ask whether the customer has questions. Tell them plainly that the price is held until the date and that you will need to re-check costs after it. Many customers have simply not got round to deciding; a friendly reminder with a real deadline is often all it takes.

When a quote does expire, do not quietly honor the old number. Re-check costs, send a refreshed quote with a new date and a one-line note on what changed, if anything. If nothing changed, say so; customers appreciate hearing that the price held. Tracking how many quotes close before versus after expiration also tells you whether your windows are the right length. The follow-up calls themselves are covered in unsold estimate follow-up calls.

Talking about deposits on the phone

• “For this job we take a deposit of [amount] when you sign, which covers ordering your equipment. The rest is due when the job is finished and you’re happy with it.”
• “If you cancel within three business days of signing, you get the full deposit back.”
• “The quote is good until [date]. If you need more time, call us and we’ll confirm current pricing.”

Budgets are often the real issue behind deposit questions; 56% of surveyed homeowners faced budget issues on maintenance projects in 2025^[5]. If a customer hesitates, ask whether timing or the amount is the concern, and mention financing options if you offer them.