QUESTION: “We have a bid to renovate a bathroom from a contractor we like and who comes recommended.“He has said he can reduce the bid by $400 if we pay in cash. I was wondering if you have any thoughts on dos and don’ts when paying in cash. It is in the neighborhood of $10,000, so it is a lot of cash to carry around.“I really just want to be aware of any pitfalls or ‘gotchas,’ and make sure I am protected in case of any dispute.”ANSWER: There are a couple of things working in your favor. The first is that you like the contractor; the second is that he comes recommended.You need a contract in any case, whether you pay him in cash or not, and you should not give him all of it up front.The best way is to agree contractually to release an agreed-upon amount periodically for work completed to your satisfaction, with the largest payment to come at the successful completion of all the work.Make sure you get a receipt signed by him for the amount you provide. If he uses subcontractors and he wasn’t on the up and up, he might tell them you didn’t pay him and they could put a mechanic’s lien on your house for the amount he owes them, or not finish the work.I am wondering why he wants the money in cash, as I imagine you are. The cynical in the audience will suggest that he is trying to put something over on the government — federal, state or local — either in taxes or permits.I doubt that you would be considered a party to this deception, especially if you have a contract stating that the payments were to be made in cash in return for $400 off, but I’m not a lawyer so I’m not providing legal advice — just my thoughts.Again, contract, contract and, one more time, contract. If you are still feeling a bit on edge about this, have a lawyer look over the agreement you are negotiating with your contractor.

QUESTION: I am planning to paint the interior of my house as well as refinish my hardwood floors. Which would you do first?ANSWER: Six of one, half-dozen of the other, but if it were me, and it has been, I’d paint first and refinish second. I’ve always found it easier to remove dust from the walls than get all the paint off the floor, no matter how carefully I cover things.