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Originally Posted by ACutAbove
I d just like to throw this out there. Not to this job that was being done, but concerning smaller companies that take on some jobs from people. Do you think it is wrong for a contractor to ask for enought money up front to cover the cost of material. That waythe contractor does not get stuck with the cost of the material if the client decides he or she cannnot pay for the whole project or tries to back out before it is done?????
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No, it is not necessarily wrong to ask for a reasonable deposit in addition to a signed contract. However, most reliable companies have their own credit lines with established vendors and they do not pay cash for their materials. If you hire someone who requires money to buy materials, that generally means he is on a COD status with his suppliers, since he doesn't meet their credit requirements or he has been a late payer for too long and they shut him off.
One thing to always ask to see is a copy of his liability insurance policy and his Worker's Comp policy, if he has others working for him.
Finally, if he is not an established businessman, tell him you need his SS# for the 1099 you will file at the end of the year. Watch his reaction to that!
