MHIC NASCLA Contractors Practice Exam 2025 - Free Contractor License Practice Questions and Study Guide

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What is the maximum deposit permitted for a project with a total contract price of $1,500?

$500

In construction contracts, regulations often specify the maximum deposit amount a contractor can request from a client before starting a project. Generally, for home improvement contracts, the maximum deposit is limited to a fixed portion of the total contract price. This reduces the risk for consumers by preventing contractors from requiring excessively large upfront payments before any work has begun.

In the case of a project with a total contract price of $1,500, the maximum deposit allowed is typically set at $500. This is aligned with standard regulations aimed at protecting homeowners by ensuring that they are not placed in a vulnerable position regarding funds paid upfront for services that have yet to be rendered.

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