contractor asking for partial payment

6 days ago

The contractor I've been working with for a year now with $10,000 (10%) left to be paid, has asked for partial payment. We agreed on $5000 now and upon completion $5,000.

Contractor says: Cash flow is important to us so that we may pay our subcontractors. Also he said: It’s very important that we are able to pay them on times that they do not pursue both you and us for funds past due.

However there is still a portion left on the punch list. The contract we signed says that 10% to be paid at the completion of the project. Which is $10,000. I guess I'm afraid if I pay and then will have less leverage.

I don't want to create a bad relationship, but not sure what to do?

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