Red Herring said:
As for payment in advance..... DON'T DO IT. Use someone who can float the materials.
As a Registered Sign Contractor I can guarantee I will not do a job without a deposit. If you do not like that - take a walk. I have never failed to complete a contract, have never been sued and don't intend to start chasing dead beats for payment and suing them if they do not pay up. I do not take any job unless a deposit of 60% is paid up front and in advance. I don’t care if it is in cash or check – just NO credit cards! I am not giving a percentage of my work and profit to finance someone else’s job.
I have an excellent reputation and usually the only people that balk about the deposit do not have the money to pay it and also usually do not have the money to pay the balance. Unless you have a history with me of excellent payment of your bills this is it NO MATTER WHAT! NO EXCEPTIONS! You ought to see it from our side some time.
The only times I have been screwed since I started sticking to this policy are the few times I have not followed it. It is a tough world out there... if you do not know the integrity of the person you are contracting with, you will find out the hard way as red did (and I have too). I have a standard Windows Word file that has a list of some of the contracts I have completed and a list of references that I give to any new customer that has any doubts about what I am going to do with their deposit. As far as sign contracts are concerned this goes whether it is a $150K contract or a $100 contract. I usually will not take a job that is less than $ 1500 because it is not worth all the labor to do the associated paperwork the government requires of people who do it right. I provide a certificate of insurance (2 million liability) right up front and a 1099 form for the customer so they know who they are dealing with. Before you let anyone work on your property get that certificate of insurance... if they do not have one they should do no work. You will be liable for any accidents on the job including one of his workers cutting his hand off with a knife.
I agree with red (in a way) but it is up to the buyer to know who he is doing business with. Crooks are everywhere... some of my most difficult clients are lawyers, some of who think that no matter what, there is some legal (if not ethical) way to get out of paying what is owed. I am just completing a job with a lawyer for over 65K without all the written BS one might expect a lawyer to demand. My original proposal is my only contract. It is in written in plain language and states what I am going to do and for how much. It details materials to be used, methods of construction, installation, permits, who is responsible for what and all specifications necessary so that there are no misunderstandings. The deal is sealed with the deposit check and the signed proposal and approved artwork. I am not going to be anyone's bank nor am I going to put myself at financial risk for someone that I do not know. If you have uneasy feelings about a contractor or an agreement, then the best thing is to trust your gut! I am not going to do a Dunn & Bradstreet or credit check on my potential customers. If they want to do one on me at their expense; I really do not care.
Quality work from quality contractors and you USUALLY get exactly what you pay for. The guy that is working under the table and working for cash (and giving a discount for cash) is not doing that because he does not trust you. He is doing it to cheat the government or someone else. Since you already know that he is a cheat you can extrapolate from there.
Red – Really, check out his licensing entity and see what your options are. Most likely he has a history. If he is not licensed and is passing himself off as a contractor you have a good case to recover all of your money even if you have to seize some of his property.
Rant Over… but real and honest contractors do not do what that guy did… gypsies do. You knew he was a cheat and opted to go with him to save a few bucks... I would leave the cash discount part out of the story when discussing this with the authorities. That is my side of the story and the way I see it.