I am a private owner requesting contractor to do wall repair work. Their fee proposal was provided and they are requesting an upfront payment.
In Hawaii, generally on private projects, contractors can enter into a construction contract that controls payment terms with little oversight or limiting regulation from statutes. Hawaii allows parties on most private projects to set their retainage amount process. To put it simply, it is up to the parties to determine what type of construction contract they plan to enter in which they will then specify payment terms. If you were to enter into a "freedom of contract", then the parties are free to agree to essentially any terms they want with some limitations.