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Can you pay contractor during progress payment for advance payment for materials not yet installed and deliver on site?

HawaiiConstruction Contract

Contractor Monthly payment application - the contractor, is billing for materials not yet incorporated on-site and not yet delivered to the site or to the contractor. the contractor indicated they are billing so they can pay the advance payment for shop drawings to start. The project has performance and payment bonds. Are the two bonds or any of these bonds sufficient to insure the advance payment in case the project is not completed, and the material is not yet on-site?

1 reply

Sep 22, 2022
It is not uncommon to pay a contractor a deposit so that long lead items can be ordered.

Whether in your case it is proper would depend on the language of the contract. Whether the bonds cover it would depend on the language of the bonds.
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