Imagine this: your renovation crew blocks two weeks in the schedule for a specific project. The client paid a deposit, everything looks good. Three days before the start, they call and say they've changed their mind. The schedule is empty, the next job isn't for another month, and you're left with a gap you can't fill. This is a classic problem for small renovation teams in Poland — and it's not just about losing money, but also about disrupted planning.
In this article, you'll learn how Polish law regulates deposit situations when a client cancels a renovation, how «the client just changed their mind» differs from exercising the statutory right to withdraw from a contract concluded at a distance, and what you can do to protect your business — without consulting a lawyer in every situation.
Article 394 of the Civil Code: how the deposit works
The Civil Code in Article 394 regulates deposits precisely, and it's worth knowing these rules before you start collecting them.
§ 1 states directly: unless the contract states otherwise, a deposit given upon entering into a contract means that if one party fails to perform the contract, the other party may withdraw from the contract without setting an additional deadline and keep the deposit received. If they gave the deposit themselves — they can demand double the amount. This means that if the client doesn't show up for the renovation and doesn't perform the contract, you as the contractor have the right to keep the deposit paid.
§ 2 explains that if the contract is performed, the deposit is credited towards the performance of the party who gave it. In other words — if the renovation goes ahead, the deposit is part of the cost estimate and the client pays less.
§ 3 is key for disputed situations: if the contract is terminated, the deposit is returned, and the obligation to pay double the amount ceases. This also applies when non-performance occurred due to circumstances for which neither party is responsible or for which both are responsible.
Where these rules come from: Article 394 KC comes from the Civil Code, consolidated text Dz.U. 2026 poz. 795 (ISAP/ELI) — Article 394 of the Civil Code
When the deposit doesn't belong to the contractor
The rule is simple: the deposit works in favor of the party that didn't give it, but only if the other party actually failed to perform the contract. If the client cancelled but not through their own fault — for example, due to an unavoidable event that prevented them from starting the renovation — the deposit must be returned. Similarly, if both parties mutually agreed to terminate the contract before work began, the deposit goes back to the client.
Consumer's right to withdraw from a distance contract
This is the other equally important side of the coin. If the contract with the client was concluded at a distance — for example by phone, email, or online form — the client as a consumer has additional rights that you cannot ignore.
According to the Consumer Rights Act and UOKiK's explanations, a consumer can withdraw from a contract concluded at a distance within 14 days from the day it was concluded without giving reasons. This right applies regardless of whether you received a deposit.
Important note for contractors: the service can begin earlier at the consumer's explicit request made on a durable medium — for example in an email or SMS message. In such a case, after withdrawing from the contract, the consumer pays for services performed up to the moment of withdrawal. If the service was fully performed with their consent, the right to withdraw expires.
Where this comes from: UOKiK explains the consumer's right to withdraw within 14 days without giving reasons — UOKiK on consumer rights
The difference between «the client changed their mind» and exercising the right to withdraw
This distinction is crucial for your practice and can literally determine whether the deposit belongs to you or must be returned.
First situation — the client simply changed their mind. If the client called three days before the start and said they don't want the renovation after all, but doesn't invoke any statutory rights — you're dealing with non-performance of the contract on their part. In this situation, Article 394 § 1 KC works in your favor: you can keep the deposit.
Second situation — the client exercised the right to withdraw. If the client sent an official statement withdrawing from the contract within 14 days of its conclusion and didn't consent to the service starting earlier — the law is on their side. Then the deposit must be returned, unless the service has already been fully performed with the consumer's consent.
The difference is therefore: «ordinary cancellation» is a business risk that you can secure with a deposit. Exercising consumer rights is a statutory entitlement that you cannot «override» with any contract clause.
Why this matters for your schedule
When the crew blocks two weeks in the schedule and the client cancels at the last minute, you lose not just the deposit — you lose the entire period that you could have sold to someone else. That's why it's so important to clearly document: when the contract was concluded, when the client paid the deposit, when work begins. This lets you assess whether in a given situation you can keep the deposit or must return it.
Practical rules: how to document dates in correspondence
Don't wait until there's a problem to start documenting. The rule is simple: everything we agree with the client, we write down — preferably in email or SMS, which constitute a «durable medium» under the law.
What to document:
- the date of first contact and the form in which the contract was concluded (phone, email, meeting),
- the date of cost estimate and scope approval,
- the date of deposit payment and amount,
- the planned start and end dates of work,
- the client's explicit consent to earlier service start — if they give such consent.
This way, when the moment of cancellation comes, you'll have in black and white who approved what and when. This isn't «against the client» — it's simply protecting your business.
Example with conditional numbers — use your own
Let's say you run an average renovation team. Your schedule is planned three months in advance. If the client cancels three days before the start:
- you lose the deposit (but don't have to return it, because it's non-performance of the contract by the client's fault),
- but you also lose two weeks of work for the entire crew, which could have brought revenue.
In this case, the deposit covers less than half of the real loss. That's why it's worth considering a higher deposit amount for longer projects or setting additional rules in the contract — within reasonable limits and in accordance with the law.
What you cannot do with the deposit
A deposit is not a security deposit that you can keep «just in case.» If the client exercised their statutory right to withdraw from a contract concluded at a distance, you cannot refuse to return the deposit citing «loss of time» or «blocked schedule.» That would be a violation of consumer rights and could end with a complaint to UOKiK or even a lawsuit.
Similarly, you cannot «automatically» keep the deposit in every cancellation situation. You always need to assess: is it ordinary cancellation or exercising the right to withdraw? Did the client consent to the service starting earlier? Was the contract actually performed?
Safe rule: if in doubt — return the deposit. The cost of returning is known, the cost of a legal dispute is much higher.
Documenting agreements: why it matters
In practice, many renovation business owners' problems start not from the cancellation itself, but from lacking proof of what was agreed upon. The client claims that "the contract was only preliminary." You're convinced everything was clear. Without written confirmation — email, SMS, or even chat — it's hard to prove anything.
That's why the rule is simple: every important agreement = a message to the client. It's not about being suspicious — it's about having proof in case of a dispute, sitting in an inbox rather than in memory. Keeping orders, payments and dates in order also pays off later — reporting automation covers how to do that without manual notebook keeping.
When you need a lawyer, not a solo decision
There are situations where even the best journal and most thorough documentation aren't enough. If the client claims the contract was concluded in a different way than you interpret it — for example, that the cost estimate was only «approximate» and not binding, or that they didn't consent to a specific form of contract conclusion — it's worth consulting a specialist.
Similarly, if the deposit amount is significant and the case could go to court, a lawyer should make the decision on whether to keep it. Your role as a crew owner is to run the business, not to replace a legal advisor.
How to fill a gap in the schedule without legal disputes
When the client has already cancelled and the deposit has been returned (or kept according to law), you're left with an empty slot in the schedule. Instead of seeking «revenge» or forcing a new client, consider a simpler solution: a waiting list.
Keep a simple list of clients who showed interest but didn't have a specific date yet. When a gap appears — write to them: «we have an earlier slot available, does it work for you?» This requires no legal disputes, generates no costs, and often lets you fill the schedule within a few days.
Do it yourself: a simple booking journal
You don't need a complicated system to track reservations and deposits. A simple spreadsheet or notebook that you maintain consistently is enough. Here's what should be in it:
- booking date — when the client reserved the slot,
- client details — name, address, phone,
- deposit amount and payment method,
- work start date,
- status: in progress / completed / cancelled by client / cancelled by crew,
- cancellation reason — if applicable,
- additional notes.
This journal lets you at any moment answer the question: «do we have a job in this slot, or a gap in the schedule?»
What it looks like when a system runs this for you
If you run your business more systematically, the deposit and start date can be part of the client card in CRM. The system reminds you about the deposit when creating a reservation, and then sends an automatic reminder to the client a week before the start. If the client cancels — the status «cancelled» and reason are recorded in the card. This isn't «Big Brother» — it's simply the company's memory that works independently of who's running the day.
At this point, it's worth considering tools that automate reminders and client communication. CRM and automations lets you collect all client data in one place and never forget about deadlines. Automatic messages send reminders via SMS or email without your manual action. Booking Systems allow the client to independently choose a time from available slots. Integrations help connect the systems you already use into one connected data flow. Tasks turn agreements into concrete tasks with a deadline and responsible person.
If you're wondering where to start with automation in your renovation business, check out the guide Where to start automation in a small business which shows four thresholds instead of general analysis. And if you want to calculate how much you can save, read How much does process automation cost — you'll find realistic 2026 ranges there. More about what a system can and cannot do is in Process automation in a company.
Frequently asked questions
Can I keep the deposit if the client called a day before the start and said they changed their mind?
Yes, if the contract wasn't concluded at a distance or the client didn't exercise the right to withdraw within the 14-day period. In this situation, it's the client who didn't perform the contract, and Article 394 § 1 KC allows you to keep the deposit.
What if the contract with the client was concluded by phone — is that a «distance contract»?
Yes, a contract concluded by phone, email, or online form is a distance contract. In such a case, the client as a consumer has the right to withdraw from it within 14 days without giving reasons.
Can the client withdraw from the contract after work has started?
Yes, but then they pay for services performed up to the moment of withdrawal. If they consented to the service starting earlier and it was fully performed — the right to withdraw expires.
Can I write in the contract that the deposit is non-refundable in any situation?
Not entirely. If the client exercises their statutory right to withdraw from a distance contract, you must return the deposit. A «non-refundable» clause is invalid to the extent that it violates consumer rights.
How many days do I have to return the deposit if the client withdraws from the contract?
The law doesn't specify a specific deadline for returning the deposit, but the rule is: return should be «immediate,» preferably within 14 days of withdrawal. The longer you wait, the greater the risk of claims from the client.
Is a deposit the same as an advance payment?
No. A deposit has special legal significance described in Article 394 KC — if one party fails to perform the contract, the other can keep the deposit or demand double the amount. An advance payment is a regular prepayment that, in case of contract withdrawal, must be returned in full.
What to do when the client claims the contract was «only preliminary» and not binding?
It depends on documentation. If you have an email or SMS with an approved cost estimate, start date, and deposit amount — you have proof the contract was binding. If you have no written confirmation, it will be harder to prove the contract was binding.