I have to pay a deposit to the contractor. I would like to know the implications of issueing the cheque in the name of the contractor, as he requested, instead of in the name of his company.
Also, he says the invoice would be sent to me once the cheque has been cleared. Does an invoice come AFTER or BEFORE payment?
Thank you for helping!
P.S. Contractor documents (WSIB, Insurance with Bullfrog) seem to be in good standing. One of the references contacted was rather ecstatic about his work and work ethic.
It does seem a little strange to do a deposit to the person rather than the company name, but it may just be for "book keeping".
The fact that it is a cheque that he wants or that yoiu are writing is good sign. A paper trail is always good. Asking for a large cash deposit is a little scary.
Regardless of the cheque, make sure that you receive a contract with as much detail as you need to feel comfortable...pay schedule, hold back for finishing, specific scope of work and the like.
You seem to be asking for and checking references and that is great.
Invoices come BEFORE payments, but you can ask for receipts of any deposits or payments made along the line as per your pay schedule.
Most companies have some software that can make note of any payments and send you copies of the paperwork.
Actually 'I' posted this question. I had lost the password for my original account & was in panic mode with regard to that issue. So I created a new account using my other email & posted my question. Some time later I received an email from Trusted Pros to reset the password to my initial account. I tried to remove this posting but failed to do so. Just wanted to get that out of the way.
Now to the issue at hand, this is getting complicated. I have been reading all night about independent contractor. Besides the payment issue, this contractor is providing services as an 'independent contractor' but he will have an assistant on the job. I don't know whether that assistant is licensed, has insurance, etc., the legal implications of which are way above my head. I may have to cancel the whole shebang.
Maybe its best to deal with a different company that is perhaps a little larger.
A good G.C has all the paperwork, insurances and knowledge so you don't need to worry.
I assume that you don't want a legal lesson on employee liability so look for a bigger company and appreciate the cost to you of not having to worry.
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