What is a reasonable deposit amount?

For installations quoted at $7500. and above here in Western Australia we are bound by the ‘Home Building Contracts Act 1991’.

The Act applies to parties entering into a ‘home building work contract’, being a contract for the performance of ‘home building work’ or ‘associated work’, where the value of the fixed price contract is between $7,500 and $500,000.

This Act limits the deposit to 6.5% of the quoted price of the works and immediate reimbursement for materials brought to site and progress payments for work performed.

Balance is payable on completion of works in accordance with the mandatory written ‘home building work contract’, signed by both parties.


For work quoted at under $7500. there is no specified legally binding amount. 

At West Coast Skylights we have arrived at an amount of 1/3rd of the full price as a deposit for installations under a total of $7500. inclusive of GST  and is:

  1. the clients commitment to the installation which is their acceptance of the terms and conditions stated in the quotation, and
  2. our cue to:
    • order the skylights and materials, if not in stock, &
    • schedule an installation date.

This amount has overwhelming been received as fair and reasonable with our clients.

In the case of tube type skylight installations, which vary in price from $700. to $955. the deposit is  $440. with the balance payable on completion.

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