How do I handle a cash job?

[Zeddy]

A neighbour on my IP is a tradie. We have a fence between our property that needs to be pulled down and replaced due to termite infestation.

He has offered to provide labour if I go 50/50 on costs with him. Obviously I am happy to do so, but at the same time I want to make sure that he doesn't disappear with the cash I transfer to him.

Would it be considered rude to offer 50% of my half of the cash now, and the other 50% on completion? Are there other ways people do it? Or am I meant to just bite the bullet and hope he does the right thing?

Thanks guys!

 

[marg4000]

Most people have credit cards. Why not suggest that he buy the materials (if he is a tradie he will get a discount), copy the bill and you will immediately pay him half in cash. That way he gets the money before he has to pay the account.

But you are lucky he is only asking you for half of the cost of materials. I have known quite a few cases where one party buys the materials and the other supplies the labour.

So don't be too difficult or you may finish up paying more. Offer to labour for him, have a few beers and you will end up getting to know your neighbour as an added benefit (from the sounds of your post this is your PPOR).
Marg

 

[bbmick]

No, this is an IP from what OP said.

Can you still claim tax & depreciation for this fence if it's done this way?

Maybe it works out cheaper anyways?

 

[wylie]

Most people have credit cards. Why not suggest that he buy the materials (if he is a tradie he will get a discount), copy the bill and you will immediately pay him half in cash. That way he gets the money before he has to pay the account.

Good advice. And I'm thinking you can claim your half of the materials against your tax, but not the labour, as you are not paying for any labour.

I would be happy to have this offer made to me. It is a tiny risk that he buys the materials, gets your money and then doesn't build the fence. What sort of money are you talking?

 

[Zeddy]

I really do appreciate that I'm getting a good deal here (ie no labour costs). I just want to protect myself in the event he up and offs without actually building anything!

I'll ask him to send me the receipt for the materials (as I will definitely claim 50% of it for tax) and I will immediately do a cash transfer. That provides some assurance at least, though it doesn't cover the possibility he uses the materials somewhere else!

 

[kathryn d]

I like your idea of 50% now, and 50% upon completion.

You don't know this guy?
This will hopefully mean the fence will be completed in a timely fashion.

 

[DavidMc]

It may be that you are not able to get the comfort and the security of having it done by a reputable firm whilst at the same time paying the cheap cost of the 'side job for cash'.

 

[VYBerlinaV8]

"Thanks mate, sounds great. How about you let me know how much the materials cost, and maybe I'll pay my half on the materials rather than the labour so I've got a tax receipt".

 

[Zeddy]

I've elected to go the path of paying my 50% of the materials once he provides the receipts for the materials. This will manage my risk, I hope.

 

[Melbournian]

get his address and details as in name etc that way in the event you need to take form of action, you know where to send the notice etc.

but it seems highly unlikely.

 

[Ocean Architect]

My spider sense is tingling.

I would get a quote on what the work is worth before doing anything.

I figure that one of the following is happening:

1) the guy is honest, and either already has materials or can get them free/cheap but wants you to pay retail for them so that he can pocket the cash (which by the way is fair enough)

2) the guy is honest, sees the job as being easy, and is doing you a big favor

3) the guy is semi honest, is going to do the work for free but will claim materials himself on one of his other jobs

4) the guy is dishonest and may rip you off outright (very unlikely imo. You don't scam your next door neighbor for a few hundred bucks and risk them throwing a molotov cocktail over the fence every other day while slashing your tires/keying your car/hitting on your daughter)

I say get a quote, and have a good, honest conversation about what his motive is for doing the work for free.

 

[wylie]

I figure that one of the following is happening:

1) the guy is honest, and either already has materials or can get them free/cheap but wants you to pay retail for them so that he can pocket the cash (which by the way is fair enough) I think that is okay too. If he already has the materials, someone has paid for them, maybe not him though, but that is not a bother to the poster.

2) the guy is honest, sees the job as being easy, and is doing you a big favor This is what it appears to be on the surface.

3) the guy is semi honest, is going to do the work for free but will claim materials himself on one of his other jobs This is also okay as long as the poster can claim for the materials (his half), so a receipt from somewhere is necessary (from the neighbour?) at worst.

4) the guy is dishonest and may rip you off outright (very unlikely imo. You don't scam your next door neighbor for a few hundred bucks and risk them throwing a molotov cocktail over the fence every other day while slashing your tires/keying your car/hitting on your daughter) Also agree, but it is possible.

I say get a quote, and have a good, honest conversation about what his motive is for doing the work for free.

We have an IP with neighbours who have caused slight grief over the years, nothing major, and some complaints were genuine problems for them which we rectified. Some were a bit "on the nose". Our downpipes were blocked and we dug a rubble pit (on council's advice), but the neighbours were claiming that the water from our downpipes was undermining their foundations . They are on stumps (like us) and there are six more houses uphill but it was only OUR water that was causing their "wet feet" - yeah right!

Anyway, these same neighbours asked us a few years ago for half the cost of the timber, and he has slowly been building the fence (on top of the retaining wall we built to stop our soil "falling into their yard"). They have a dog they have to restrain and this timber fence is slowly, panel by panel, replacing the temporary chicken wire and star picket that was there.

So you might find he is genuinely wanting to do this. You are not living there and her may know you are not as involved in wanting this done as if you were living there.

 

[NBS]

I did this with my neighbour, fence falling down due to termite attack.

I approached him with a quote (materials and other costs) said I'll buy the materials and we go 50 / 50 and we both build it.

From (JUST) my point of view I would be offended if you offered only 50% of your share it would say you don't trust me.

Brian

 

[Zeddy]

Just an update - he had no issue at all at my request for him to provide me a tax invoice. He did so, and I paid my 50% to him the same day. This came up to around $500.

I have had an indicative quote that came in at $1900 for the fence alone - didn't take into account two dozen or so sleepers that also have to put in to retain about 400 mm of fill on the lower side. So in my opinion, the price is significantly cheaper, but not massively cheaper.

NBS. Point taken. However do you go around expecting everyone to just trust you? Honestly, nothing against you, but I would not feel that I had managed my risk to a comfortable level.