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Can I pre-pay a contractor for materials prior to work being completed?

Arizona
Anonymous Contractor

we have an excavation contractor that we normally pay a portion of their contract up front to provide them the funds to purchase the expensive materials needed to start up the project. Is this type of pre-payment allowed on federal projects?

1 reply

There is nothing under federal law that I am aware of that would prevent you from entering in to a contract with a portion paid up front.
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