[Raycpa]

Keep in mind that the work can be done before having to pay contractors. The contractors could be financing much of the costs.

[Hootowl99]

I can’t recall or even think of a scenario where a contractor would perform this type of project without payment as you describe. Major construction contracts such as this will require multiple payments at start-up, incremental progress payments, and a final payment at project close. I have occasionally also used incentive payments for project completion before a certain date and payment penalties for not making a deadline. All this is precisely defined in contracts and heavily predicated on conformance with engineering and business specifications.

The are some exceptions for private finance of major infrastructure that come to mind such as toll roads where there is revenue involved that goes to the builder. This revenue is used as collateral for bank loans.

[Go Gordon]

Keep in mind that the work can be done before having to pay contractors. The contractors could be financing much of the costs. Under what provisions of the FAR (Federal Acquisition Regulations) or FASA (Federal Acquisition Streamlining Act) is this possible?