A deposit may have a legitimate purpose such as mobilisation or material orders, but its basis, recipient, use, evidence, safeguards and recovery through later payments should be clear.
What to check
Use this list as a starting point. The depth of review should still match the project stage, decision value, documents and risks.
- Ensure the contracting party matches the invoice and receiving account.
- Agree scope, price, schedule, payments, variations, termination and dispute handling.
- Request a deposit-use breakdown and evidence for major materials or mobilisation.
- Define start conditions, relevant insurance or security and material ownership.
- Use traceable transfers and receipts; avoid payments without adequate records.
Questions before deciding
A useful answer should be traceable to documents, site conditions, a responsible party or a clearly stated assumption boundary.
- What happens immediately after the deposit is received?
- What evidence shows funds were used for the stated purpose?
- How is the remaining deposit treated if the contract stops?
How to document the outcome
Record information sources, review dates, documents read, people interviewed, inaccessible conditions, key findings, decisions, owners and follow-up deadlines. Separate facts, third-party statements, assumptions and recommendations.
For legal, structural, geotechnical, tax, permitting, land, design or specialist-testing decisions, use appropriately authorised and qualified professionals.
This article is general educational guidance. Project, contract, land, building and legal conditions vary and may require a specific review.