I would just like to defend my reason for asking, for as deposit. Although I can see your point with the cod status or a "late payer". Thst is not slways the case. If a company is new they might not have the resources to be able to get a credit line or not enough equity in the buisness to aquire a credit line as of yet. Being a contractor I would not have any problem showing you my insurance documents or workmans comp policy. Which I pay a ton of money for, but i feel in my line of work is nesesary to be able to make clients feel confident in useing my service. This is my first year in buisness and I think with the type of work and the quality I show in my work , my customers have been quite pleased.
Sorry for hijacking the thread with my ramblings. I would just like to say that not all contractors are the same!
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Originally Posted by NightWing
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!  |
09-15-2005, 10:09 PM
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