If your contractor says they need the money up front to buy materials – offer to issue a joint check -made payable to the contractor and the supplier.
To me, a contractor asking you to pay for materials up front is a big red flag unless they are a very small outfit. They need to have at least enough money for wages between progress payments. If they are so tight that they can not cover materials, I would get suspicious.[/quote]
Not only that… it’s a red flag that the contractor has crappy credit with suppliers… Most suppliers have 30-60 day terms for contractors with good credit. If the supplier wants cash from the contractor – that’s a BAD sign.
