How Much Deposit Can a Contractor Ask For in Rhode Island?
Rhode Island's Contractors' Registration and Licensing Act governs registration, written contracts, and when a deposit must be returned, but it sets no dollar or percentage cap on a contractor's deposit.
Homeowners in Rhode Island often ask whether state law limits the deposit a contractor may request before starting work. The Rhode Island provisions cited here do not impose a numeric ceiling on deposits. Instead, the Contractors' Registration and Licensing Act (R.I. Gen. Laws Chapter 5-65) requires contractors to register, to put larger jobs in writing, and to include cancellation and rescission protections. Separate provisions govern when a contractor must give back money a consumer has already paid.
Rules that bear on your deposit
Rhode Island law provides that a person may not undertake, offer to undertake, or bid on contractor work on a structure without a current, valid certificate of registration issued by the board. 1
The statute requires that work exceeding one thousand dollars in labor and materials be accompanied by a written contract. 2
The chapter directs that contracts contain notice of the right of rescission as stipulated in Rhode Island consumer protection laws. 3
Among grounds for discipline, the statute treats deposits a contractor is ordered to return as not a monetary award when no services or supplies were received. 4
Sources
Rhode Island law provides that a person may not undertake, offer to undertake, or bid on contractor work on a structure without a current, valid certificate of registration issued by the board.
Rhode Island's contractor statute requires that work exceeding one thousand dollars in labor and materials be accompanied by a written contract.
The Rhode Island contractor chapter directs that contracts contain notice of the right of rescission as stipulated in the state's consumer protection laws.
Rhode Island's disciplinary statute treats deposits a contractor is ordered to return as not a monetary award when no services or supplies were received.
Frequently asked questions
- Does Rhode Island cap how much deposit a contractor can ask for?
- No. Rhode Island's Contractors' Registration and Licensing Act (R.I. Gen. Laws Chapter 5-65) does not set a dollar amount or percentage limit on deposits. It instead regulates contractor registration, requires written contracts for work over $1,000, mandates rescission and cancellation notices, and specifies circumstances in which a deposit must be returned to the consumer.
- When must a Rhode Island contractor return a deposit?
- Under R.I. Gen. Laws 5-65-27, if a contract arising from in-home solicitation of an elderly person fails to conform to the statute and the consumer cancels by registered mail, the contractor must return any deposit within twenty days, and failure to do so allows the consumer to recover double damages. Separately, 5-65-10 addresses deposits a contractor is ordered to return when no services or supplies were received.
Last reviewed August 4, 2026
This page is general information about state law, not legal advice. Laws change, and how they apply depends on the facts of your situation.