Advice on contractor bidding

[Scott R]

I'm going to extend some wood floors in one part of my house. It's a medium sized project, probably 900 sq ft. I want to do a cash deal for supplies and labor with a contractor. My question is I don't want to insult anyone, but how much of a discount can I negotiate for cash?

The only point of reference I have is flooring costs from the big box stores. I have had two other bids as well from large flooring contractors that are not interested in cash deals.

[Rick Lee]

I haven't had a contractor who accepted anything other than cash. Do they normally take Amex and then discount for cash?

[Porsche-O-Phile]

Case-by-case. For such a small job it's anybody's guess what the individual installer will accept. Most of the better ones take cash, check, charge, bank transfer, whatever. But due to the size of the job you're likely to get a higher percentage of bids from small-time guys who might not be so sophisticated.

Put a requirement that bidders accept "X" as the form of payment in the Instructions to Bidders if it really matters to you, or stipulate that they state what payments they accept and any applicable discounts for cash payments as part of the bid submittals.

That's my professional answer, now here's my real-world answer:

Do you really want a low-bid, probably small-time residential contractor in your home, especially knowing that you keep a large amount of cash currency on hand? Think of the backgrounds of a lot of these guys - particularly the smaller residential types and particularly their subs if they "sub out" a lot of work (which is likely to happen here).

Think about it.

No way I would.

[Scott R]

The big box stores take any type of payment you like, including their own financing. I had a large local contractor come over for a bid and they were "amex," In fact they wanted a credit card for the deposit, but would take any form of payment upon completion, but no cash discount offered.

[vash]

first off. you can eliminate all the contractors that wont call you back or show up to give you an estimate.

only cash discount i imagine is for someone who is willing to just pocket the cash and not involve the tax department.?

[MarKoBrow]

I find that when you deal with cash contractors you tend to get the bottom of the barrel in terms of quality of goods and services.
I have several friends that are contractors and when a customer is offering cash they usually want a deep discount or in other words they don't value a person's labor and want contractor to work for less than the job is worth.

[Scott R]

Originally Posted by Porsche-O-Phile

Case-by-case. For such a small job it's anybody's guess what the individual installer will accept. Most of the better ones take cash, check, charge, bank transfer, whatever. But due to the size of the job you're likely to get a higher percentage of bids from small-time guys who might not be so sophisticated.

Put a requirement that bidders accept "X" as the form of payment in the Instructions to Bidders if it really matters to you, or stipulate that they state what payments they accept and any applicable discounts for cash payments as part of the bid submittals.

That's my professional answer, now here's my real-world answer:

Do you really want a low-bid, probably small-time residential contractor in your home, especially knowing that you keep a large amount of cash currency on hand? Think of the backgrounds of a lot of these guys - particularly the smaller residential types and particularly their subs if they "sub out" a lot of work (which is likely to happen here).

Think about it.

No way I would.

Thank you, I had not considered that. I'm always a bit to trusting.

[Jess]

Hi Scott,

I'm a GC here in Denver and I know a fantastic hard wood contractor. I used him in my own house and have recommended him to several friends who have been equally impressed. This is the only contractor I've ever tipped!

Sonrise Flooring 303-514-4620

No affiliation, I don't even remember the owner's name.

[Scott R]

Originally Posted by Jess

Hi Scott,

I'm a GC here in Denver and I know a fantastic hard wood contractor. I used him in my own house and have recommended him to several friends who have been equally impressed. This is the only contractor I've ever tipped!

Sonrise Flooring 303-514-4620

No affiliation, I don't even remember the owner's name.

Thank you! We will contact them today.