Deposit

A partial payment at signing that holds the date; usually 25–50% in the GTA.

How it works in practice

A deposit converts a verbal hold into a binding booking. Most GTA venues and vendors take somewhere between a quarter and half of the contract value at signing, with one or more further payments before the event. The most important detail is not the percentage but what the contract says happens to the deposit if the event is cancelled, moved or reduced. That lives in the cancellation clause, and it should be read at the same time.

Watch the wording. A non-refundable deposit is gone on cancellation. A deposit credited toward a future date may survive a reschedule. A deposit described as a booking fee may not be credited toward the total at all.

Worked numbers

The Harbour Gala hotel contract sits around $24,000 all-in: an $18,000 F&B minimum plus an 18% service charge plus 13% HST on both.

Ask whether the deposit percentage applies to the total with tax and service, or to the base only. It changes the cheque.

How to handle it

1. Read the cancellation and deposit clauses together before signing.
2. Confirm whether the deposit is refundable, transferable to a new date, or credited against the final bill.
3. Get a receipt that shows the HST portion, so it can be tracked properly.
4. Put each payment date in the master timeline with a reminder a week before.
5. Pay by a traceable method, never cash without a receipt.
6. Keep a single payment log per event: vendor, amount, date, method, balance owing.

Questions to ask

• Is the deposit refundable in any circumstance, and by what date?
• If the date moves, does the deposit carry over to the new date?
• Is the deposit calculated on the total with tax and service, or on the base?
• When are the second and final payments due, and what happens if one is late?

Related tools

The event budget sheet tracks deposits and balances. See also retainer, HST and service charge.