I have never been asked for one - the last 5 trades I have used over the last couple of years have not asked for a deposit. I guess I am conditioned to having not been asked?. All the guys I used (apart from render company) do not advertise and are pretty much booked up for months and months.
Builder - no deposit, monthly invoice payment agreed.
Sparks - same.
Plumber - same.
Plasterer - same.
Render Company - agreed to pay scaffolder separately (on completion), paid for the materials once the colour choice was made (happy to do so without any issues).
When you look long into an abyss, the abyss looks long into you.........
At the end of the day, the OP paid 2.5% of the job price deposit and yeah, this time he got f***ed. And that's not good.
You mention having not paid money up front to Sparks, Spreads and Plumbers..... obviously and I'm going right out on a limb here, that none of the above was costing you 20 grand each trade to employ and carry out their tasks ( although you'll probably tell me that you were).
After spending the last 40yrs in the building game, as a building contractor, to arrange and sign a contract of intent to work and carry out a project, it is common practice.
Not on a piddling little plaster, sparking or plumbing job but a larger job of 20 grand + and way upwards means the customer gives a show of commitment to said job with funds held by a 3rd party in the unfortunate event the contractor should peg it.
As I mentioned in my initial response, clients have and do change their minds.
Why the f*** should I, as the contractor, be left with a sizeable multi week or multi month hole in my diary.
No thank you.
When you look long into an abyss, the abyss looks long into you.........
Personally I would consider writing it off to experience and be glad that they are not doing the full job. Add the cost to the job and forget about it.
I don’t know what work he did for you but depending on the hours spent, materials and knowledge used, he could argue his cost is justified. However if you disagree, then chase him. Let him know he is being unfair and you would like £x back otherwise you will consider further action. Keep in mind, for the small claims process to work, you will need evidence for a 3rd party to assess the case, invoices, contracts, communication chains, evidence of payments etc.
If I had a tradesman who asked for a deposit, that would show there is zero rapport/trust between us so he just could F right off back on the nag he came in on!