Milestone Draws ($1,000 Deposit Cap)

Name: Upside ADU
Address: Sacramento, CA, US
Telephone: (916) 282-5283
Price range: $$$

Also: progress payments · draw schedule

California law caps a contractor's down payment at $1,000 or 10% of the contract, whichever is less — so on an ADU it is $1,000. The remaining cost is paid in milestone draws released only after each phase (design, permit, foundation, framing, MEP, drywall, completion) passes inspection.

Inspection-tied milestone draws protect homeowners from the up-front-deposit losses that sank builders like Anchored Tiny Homes. Upside's payment structure follows this legal cap exactly.

Go deeper:The Upside Guarantee

Related terms

Impact Fees

Back to the ADU glossary.

Ready to see what your backyard could earn?

Get a transparent, all-in quote and a feasibility check for your specific lot — usually within a few days.

Get a Free Estimate Read the ADU guides

Call Free Estimate