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What is the legal amount a contractor can ask/receive before actually doing the work

GeorgiaSubstantial Completion
Anonymous Contractor

A contractor requested 50% of total amount before he started any work. Can he do that?

1 reply

Attorney and Owner at The Storrs Law Firm
| 98 reviews
Jul 17, 2020

He can ask for anything he wants! But paying 50 percent before he does any work would be a grave mistake, unless you contractually agreed to such a payment. Under common law, the contractor would be entilted to payment when the work is substantially complete. Under most contracts, parties recognize that waiting for payment that long would be a burden for the contractor, and allow for progress payments based on the completion of work. Sometimes a small amount is paid up front for materials, but as I said, 50% would be a dangerous payment to make.

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