Contractor wants to be paid in cash

[Rene Bee]

Hi Everyone,

My GC want to be paid in cash.  Its a gut rehab which will be over $100k.  I will not be paying it all upfront.   I am not concerned about him disappearing or doing a poor job as I have known him many years.  I know paying in cash is NOT illegal but wondering what I should be aware of if I agree to this or if there are any other concerns that could become a problem for me.

Thanks in advance.

[Matthew Masoud]

Nope, no chance.

With a $2,000-$3,000 job sure but anything over $10,000 needs to be documented electronically. 

Offer to wire or write him a check.

I've heard way too many horror stories of contractors disappearing.

For that much of a rehab, I'd also have a scope of work contract that says how much they'll get paid after what work is complete.