How to get a receipt from a contractor when you pay in cash?

Question

Please help!
We're getting some work done on the house and the contractor said that they prefer cash installments (a total of three) as the method of payment and will bump down the price five percent if we pay in cash. If we do decide to take this route, how can we get a receipt to prove that we've paid (one receipt for each installment)? Is there any sort of legal stuff that we would need to do, or is a piece of paper with the amount paid and the contractor's signature suffice?

Answer 1

ask for one.

a piece of paper with amount and signature and job
or buy a small reciept book and then he can keep a copy too.

Answer 2

Did you check this contractor out before you hired him to do work? Have you checked with the BBB to make sure this contractor is on the up and up? A huge red flag is when the contractor asks for his money in CASH!!!! Any reputable builder will except a check as payment and that's how you should pay by check NOT cash. With cash he can easily disappear with your money and not return, and usually when this happens the contractor has come in and done demolition destroying your house, ripping down walls then suddenly he dissappears leaving you with a huge mess and no contractor.

I would look for another contractor ASAP unless he came highly recommended from someone who has used him multiple times and they also paid in cash and are very happy with the work he provided. Even if you pay by check it's still considered cash and you should be afforded the same 5% discount, this way they don't have to deal with the hassle of credit cards and being charged a fee, that's why they are giving you a discount.

Any reputable contractor will carry his own receipt book and will write down what you are paying for on the receipt and put paid 1/3.

To be honest unless you got good references I'd look for a contractor that accepts checks.

Answer 3

You can make payment in cash, but the contractor is required to report this income. However, when you give so much money in cash to a person, then you may have to report it as it is over $10,000. To be safe and keep your accounting proper pay by business check.

Answer 4

Be sure to get the total price in writing before they start and before you pay them anything. Then each time you are giving them cash, be sure they give you a receipt for it when you give it to them.

They're most likely giving you a price break because they are planning to NOT report the income or pay tax on it. That's illegal for them, but isn't something that can come back on you.

Answer 5

sign a contract with the terms to make sure that everything is agreed upon and followed through. that way if something happens then you will have legal recourse. also make sure that he gives you a receipt on company paper or letterhead so that you will have proof that you paid him. don't hand him a dollar without getting a receipt for each time you pay him...

Answer 6

Asking for cash should ring alarm bells in your head. It almost certainly means he/she isn't going to pay VAT, which at 17.5% against the measly 5% discount you're being offered means it's win win for him/her and leaves YOU at risk of having little recourse if/when the work is bodged. If you can't find someone through word of mouth, at least seek out someone registered with a professional trade body.

Answer 7

You must insist on the contractor signing a lien waiver with every payment issued (lien waiver upon progress payment) as well as a lien waiver upon final payment.

The site listed below supplies guidelines as well as free lien waiver forms.

All the best.