Deposit Agreement
The Deposit Agreement is a lightweight contract type for collecting deposits or securing customer commitment early in the sales process.
When to Use
Use a Deposit Agreement when:
- You want to collect a deposit before finalizing the full proposal
- The customer is ready to commit but scope isn't fully defined
- You need to secure a spot in your schedule
Example: A customer wants to reserve your crew for a spring project, but design won't be complete until winter.
What Happens When Signed
When a customer signs a Deposit Agreement:
- Deposit invoice created - An invoice is automatically generated for the deposit amount specified in the contract
- No estimate locking - All estimates remain editable
- Project NOT marked sold - Project stays in sales until a Project Proposal is signed
This contract type secures customer commitment with a deposit while giving you flexibility to continue refining the project scope and pricing.
System Fields
Deposit Agreement contracts include these system fields in the contract sidebar:
| Field | Description | How It's Used |
|---|---|---|
| Deposit Amount | The deposit to collect | Creates the deposit invoice when the contract is signed |
| Final Scope Due | Date when final scope will be ready | Displayed on contract; communicates timeline to customer |
| Target Start Date | Anticipated construction start | Displayed on contract; sets customer expectations |
| Selection Hours | Hours budgeted for selections | Displayed on contract |
| Administrative Hours | Hours for admin work | Displayed on contract |
| Design Rate | Hourly rate (defaults to $130) | Displayed on contract |
How the Deposit Invoice Works
When a Deposit Agreement is signed, the system automatically creates an invoice for the Deposit Amount. This invoice:
- Is immediately available in the project's invoicing section
- Can be sent to the customer for payment
- Tracks separately from production invoices
The other fields (Final Scope Due, Target Start Date, etc.) are informational and displayed on the contract to communicate expectations to the customer. They do not trigger automatic system actions.
Workflow: Deposit to Production
A typical deposit workflow:
- Sign Deposit Agreement - Collect deposit, set expectations for timeline
- Complete design/estimating - Finalize scope and pricing
- Sign Project Proposal - Customer commits to full production with final pricing
- Deposit applied - The collected deposit is typically credited toward the production contract
Related Topics
- Creating Contracts - How to create a Deposit Agreement
- Project Proposal - The full contract that typically follows
- Invoicing - Managing deposit invoices