# Contractor 5% Off for Cash NOT Check?



## redavalanche (May 25, 2010)

Hi.
Being as this is a home roofing contractor and not a flea market deal...
I was surprised that his 5% off for cash deal as stated on the proposal did not include check or cashiers check now that its time to pay.

They want green money only to get the 5% off over 10K roof job. I think that its wrong. I dont want to carry 10K to their office. But think I should get a discount for check or cashiers check. What do you think? 

Maybe, I should now pay by CC. LOL.


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## Termite (Apr 13, 2008)

Sad thing is they're most likely shirking their responsibility to pay taxes by getting paid in cash, but probably charging pretty much the same as the guys that are honest businessmen. No other reason to do it that way...Checks have to be accounted for by their accountant or in an audit. So they make big profits off you...Actually on the backs of the rest of us.

You pay in cash....You have no way to sue or seek legal action when they run away with your money. No proof you paid them either. 

I'd run like hell and find a reputable contractor.


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## vsheetz (Sep 28, 2008)

No way I would pay 10k in green cash for a roofing, or most anything else. The guy is obviously looking to dodge paying taxes - which all of us get to help make up the difference.


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## redavalanche (May 25, 2010)

That is what I figured. Thanks for confirming. 
Least I found this place. 

Guess there are turds out there with A+ BBB ratings and A Angies list.

I hear its illegal to charge more to CC users.


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## AtlanticWBConst. (May 12, 2006)

More information:

Its not just tax savings for him - By paying him cash - he will also benefit from not "having to pay" the large Workman's Comp fees (For roofing work) or any liability insurance fees - on the job. With cash, he will pocket that extra money, since there is no paper-trail for the insurance audits.

Example: $10K roofing job may mean $3500 in labor payouts = Approximately $1165.00 more should be paid to a Workmans Comp Insurance coverage ($33.30 for every $100 paid to workers).

* Now, this is all speculative, as to his true motivation - but asking for cash in payment (with a discount given to encourage the payee) = generally is an effort to have no "paper trail", which equals more money in the contactor's pocket.


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## Scuba_Dave (Jan 16, 2009)

redavalanche said:


> I hear its illegal to charge more to CC users.


I'm not sure if charging more for CC charge is the same as giving a discount for cash purchase (IE checks would still pay more)
Always seems to be loophole that someone finds

http://fso.cpasitesolutions.com/premium/le/06_le_ic/fg/fg-merchants.html



> The following states prohibit merchants from adding surcharges to credit card transactions
> 
> 
> California
> ...


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## bjbatlanta (Jul 16, 2008)

Did he ask for small denominations, unmarked bills??


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## Jim F (Mar 4, 2010)

I wonder if he has illegals working for him. On the surface $500 seems like a big savings but as previously posted, not worth it if you need to have him come back and make it right. If he is a BBB contractor, I would definately give them a call or e-mail.


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## jomama45 (Nov 13, 2008)

redavalanche said:


> Guess there are turds out there with A+ BBB ratings and A Angies list.


There most definately are, as money talks with either of these organizations. In my experience, with contractors that I'm familiar with, and believe to lean toward the fraudulent side, they all tend ot flock to orgs. like this as a way to buffer their reputation. IMO, if you need to pay orgs. like these large amounts of money to run cover for you, because referal & "word of mouth" work won't keep you busy, you may have some issues.



AtlanticWBConst. said:


> More information:
> 
> * Now, this is all speculative, as to his true motivation - but asking for cash in payment (with a discount given to encourage the payee) = generally is an effort to have no "paper trail", which equals more money in the contactor's pocket.


 
I'd agree that it is all specualtion at this point, especially if he is brazen enough to have it printed on official invoices or contracts. He may just have simply been burned enough times by bad checks to prefer cash. I've been paid cash on jobs before, because the HO insisted, & I merely added it to a deposit slip at the bank just as you would add an additional check. Last I heard, cash was still a legal form of tender in this country.

But, in the OP's case, I'd be apprehensive to gamble the 5% savings for the possibility of jeopordizing any warranty/call-back issues.


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## Thurman (Feb 9, 2009)

"Example: $10K roofing job may mean $3500 in labor payouts = Approximately $1165.00 more should be paid to a Workmans Comp Insurance coverage ($33.30 for every $100 paid to workers)."
Case in point: A local roofer/remodeler, who has been in business for many years with a good rep was recently charged by the State for not paying Workman's Comp Insurance dating back some years. He wanted this case to go to trial and got it. His reasoning: His books showed that he never had more than three (3) employees on payroll and hired "day workers" often and told them he would pay cash at the end of each day and they were "Private Contractors" subbing out to him.
He won. I'm not in total agreement with what he was doing, but it turned out to be legal. David


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## rusty baker (Feb 13, 2009)

Taking credit cards can cost you 3-5%. I would offer 5% off for cash. No bad checks, no postdated checks. If I take a check to the customers bank to make sure it's good and go ahead and cash it beause I'm afraid it won't be good tomorrow, some banks charge 5% to cash them if you don't have an account there.


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## Jim F (Mar 4, 2010)

Thurman said:


> Case in point: A local roofer/remodeler, who has been in business for many years with a good rep was recently charged by the State for not paying Workman's Comp Insurance dating back some years. He wanted this case to go to trial and got it. His reasoning: His books showed that he never had more than three (3) employees on payroll and hired "day workers" often and told them he would pay cash at the end of each day and they were "Private Contractors" subbing out to him.
> He won. I'm not in total agreement with what he was doing, but it turned out to be legal. David


Yes that's what my roofer did to work around the Workman's comp. The only thing I could find on Google about it was that it was sketchy, but so far, legal.


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