A Dubai renovation contractor asking for 70% upfront before any work begins isn't requesting a deposit. They're transferring all the financial risk to you — while keeping every option to disappear, deliver poorly, or "discover problems" that cost extra later.
This is one of the most expensive scams in Dubai's renovation market because it's the easiest to dress up as standard practice. Here's how it works, why it keeps happening, and what a fair payment schedule actually looks like.
How the scam works
A contractor quotes you AED 80,000 for a kitchen renovation. They ask for AED 56,000 (70%) upfront "to order materials and secure the team." You pay. Then one of three things happens:
🚩 The 3 outcomes of paying 70% upfront
- The contractor ghosts. WhatsApp goes unanswered. The "office" address turns out to be a virtual mailbox. You've lost AED 56,000 and have no recourse without a written contract and trade license verification.
- The work starts but quality collapses. They've already been paid, so there's no incentive to do the job properly. Cabinets are wrong, tiles crack, plumbing leaks. When you complain, they argue every issue or stop showing up.
- "Unexpected problems" surface. Two weeks in, suddenly the wiring needs replacing, the floor needs leveling, the original plumbing is damaged. Each new "discovery" requires more payment. The original AED 80,000 becomes AED 130,000.
The 70% upfront structure is the enabling mechanism for all three outcomes. Once a contractor holds most of your money, your leverage is gone.
Why this scam works in Dubai specifically
Three Dubai-specific factors make this pattern thrive:
- Trade license churn. Some contractors operate under one trade license, take large deposits, then dissolve and reopen under a different name. Recovering money from a dissolved company is nearly impossible.
- Material lead times. Imported European cabinets, marble slabs, premium fixtures all take 4–10 weeks. Contractors use this real lead time to justify large upfront payments. Reasonable — until 70% becomes the norm.
- Tenant rush. Renovation often happens between tenancies under time pressure. Homeowners agree to terms they wouldn't accept if they had three more weeks to negotiate.
What a fair payment schedule actually looks like
Dubai industry standard for renovation projects:
Anything that pushes the deposit above 50% is high-risk. 70% upfront leaves you with virtually no leverage to demand quality, fix problems, or hold the contractor accountable for delays.
How to spot the scam in 30 seconds
Three signals confirm you should walk away:
What you should do instead
Before signing any renovation contract over AED 30,000:
✅ Protection checklist
- Negotiate to 30–40% deposit, milestone-based after that. If they refuse, walk away. There are dozens of contractors in Dubai who will accept fair payment structures.
- Define milestones in writing. Demolition complete by [date], plumbing roughed-in by [date], cabinets installed by [date]. Each triggers the next payment.
- Verify the trade license on the Dubai DED website before signing anything.
- Check the company's age. A contractor who has held the same trade license for 5+ years is exponentially safer than one with a new license. Deposit-and-disappear scammers cycle through new licenses.
- Use bank transfers only — never cash. If the contractor demands "payment to my personal account" or cash, walk away immediately. No paper trail = no recourse.
- For projects over AED 100,000, consider an escrow arrangement where milestones are released by a third party.
How TaskRight protects you
Every renovation contractor on TaskRight is verified — trade license held for minimum 2 years, customer reviews, project portfolio, payment-dispute history. We don't list contractors who've been flagged for deposit-pattern scams or who refuse milestone-based payment. You get the contractors who do the work, not the ones who collect deposits.
👉 Find verified renovation contractors in Dubai →
Frequently asked questions
What is the standard deposit for renovation in Dubai?
Industry standard is 30–40% deposit at contract signing, 30–40% mid-project after demolition and roughing-in is complete, and 20–30% final payment after snagging. Anything pushing the upfront above 50% should be questioned. 70% or higher upfront is a major red flag.
Why do contractors ask for 70% upfront in Dubai?
Sometimes the justification is real — imported European cabinets and stone require large supplier deposits. But more often it's used to transfer financial risk from contractor to homeowner. Once they hold 70% of your money, they have little incentive to deliver quality or stay on schedule.
What should I do if a contractor demands 70% upfront?
Negotiate. Counter-propose 30–40% deposit with milestone-based payments after that. If they refuse outright, walk away — there are dozens of reputable contractors in Dubai who accept fair payment structures. The 70% demand is a choice, not a necessity.
Can I get my deposit back if a contractor disappears in Dubai?
It's difficult without a written contract, verified trade license, and bank-transfer paper trail. You can file a complaint with Dubai DED (Department of Economy and Tourism) and pursue legal action through the Dubai courts, but recovery rates are low and the process takes months to years. Prevention through proper payment structuring is far more effective than recovery.
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