how do we handle this?

Log in / Sign Up

List of Forums + New Post Recipe Box Usergroups Following My Posts Bookmarks

Private Messages Advanced Search Rules New User Guide FAQ Advertise Contact Us

Forum -> Household Management -> Finances

How do we handle this?

View latest: 24h 48h 72h

amother

Tue, Feb 21 2012, 3:53 pm

We had to get a builder to help with house extension. He came with good reference from other members of the shul and gave us a good quote. Now he just started to work this week and told me today he wants to be paid for his work in cash, 1/10 of the project costs every week 'cuz the work is supposed to take 10 weeks. He said he doesn't take check or bank transfer because he has to pay his workmen every friday in cash.

How common is it? I'm a bit concerned he's doing it to evade tax and if we'll be guilty or if it's morally wrong. Also I can only withdraw $200 from our joint account so don't know how I can come up with his quote. WWYD?

Fabulous

Tue, Feb 21 2012, 3:58 pm

I don't care if it's my best friend's brother, mother or sister, for contracting work you have to sign a contract. Did you? If you did, it should say that in there. If you didn't, you have to explain it to him that he should have been up front with you about the cash and how you were to pay him BEFORE he started the work.

How did you discuss you were going to pay him? How much when he started, middle, end? I don't think the 1/10 each week is normal because most jobs go over and then he has all your money before he finishes. He should get a deposit and then another deposit halfway through and the rest when he is done.

Again, all of this should have been discussed BEFORE it began.

yummymummy

Tue, Feb 21 2012, 4:07 pm

I wouldn't be worried about the concerns you raised. You are not responsible for making sure he pays taxes. It is perfectly acceptable to pay in cash for services rendered. And why can you only withdraw $200 from your bank account? Can't you go down to the bank with DH and take out as much of your savings as you'd like?

What I would be concerned about is fully paying for a job that's not finished. You should pay a deposit in the beginning, a percentage midway and the balance upon completion.

Last edited by yummymummy on Tue, Feb 21 2012, 4:08 pm; edited 1 time in total

sky

Tue, Feb 21 2012, 4:08 pm

What we've done is give 25% at the beginning, 25% in the middle at a predetermined stage (like when the walls are framed) and then 50% at the end. To split it up by the week sounds like a pain on your end because you have to have the money each week and because a project never takes an exact amount of time.
We also paid all cash. I think once you pay it doesn't matter what he does with it (I think). Just make sure to get clear receiepts that you paid him so at the end he doesn't come and say you never gave him money (without cashed checks you have no proof)

Page 1 of 1