The contractor I selected for my kitchen remodel is asking me to pay in cash. He’s not asking for a big pile of money upfront, and the contract stipulates that payments will be made periodically throughout the project and there will be a signed, itemized receipt for every payment. He’s licensed and carries workers comp insurance and has great references. But it’s still spooking me that he wants to be paid in cash. Even aside from the fact that he’s probably trying to dodge taxes, if I withdraw $20k from the bank over the course of a month, does that make me look suspicious? Are people really paying for home improvement projects with briefcases of hundred dollar bills?
We have never asked for cash from our clients. I would be a little worried… Also, we always do payment stages for our client. checks or credit cards are accepted. check is like cash… why wouldn’t they accept it? Just say no.
I would be most concerned with the schedule of payments the contractor is wanting. Contractors can request a deposit of $1,000 or 10% of the contract price, whatever is less.
That is the first indicator of a contractors questionable ethics if they ask for 1/2 the money upfront, don’t do it.
Your contractor is entitled to progress payments as the work is completed. When the cabinets are delivered I would feel he is entitled to 1/2 the contract price to cover the material expense when delivered.
If your not comfortable don’t proceed and I would ask your contractor why cash and not checks? Maybe he went through a divorce recently who knows but he shouldn’t mind telling you.
definitely a red flag. no way should you pay cash unless you get a receipt…or it never happened !!