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Cost plus contract

Florida

Contractor is billing owner for invoices and then asking for “draw”. Example: Invoices (not paid receipts) total 30k. Contractor asks for 60k. I thought I would be sending funds based on paid receipts and not providing a float to the contractor. What is standard in the trade?

1 reply

Sep 4, 2020

Without seeing the agreement between the owner and the contractor, it is hard to say if this is permissible, but it sounds unusual. A consultation with an attorney familiar with construction law would be prudent. 

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