In some cases, it’s pretty easy. A government entity could award a grant to a project of a small city, for example, and you may not have to pay anything because the work is part of city maintenance.
So the city goes out and signs a deal for the contractor to do the work, and the contractor will pay the municipal government the cost of doing the work and then, in return, the city will give the contractor an “advance” payment. The advance payment is a payment made to the contractor on what is called a “paperwork,” which simply means that you have to pay a fee to get your work done, and a document you must give to get your work done. You may have to pay some “paperwork” fee, but you don’t have to pay for anything.
There is one kind of grant that is not grant-type. It is a “contingent grant,” which basically means that the grantee has to go to certain federal and state institutions to prove that it needs the money. This can be very complicated, however, if the grant is for a project of a large city or city government. For example, if the grant is a “contingent grant” that will pay one city employee $1,000 on one contract, the grantee has to get the money from the federal government before she needs to send in paperwork to prove that she needs the grant, and that paperwork is called “a filing fee.”
There’s no way to avoid all of this. You will almost certainly have a paperwork fee. You should not have to pay $800 for a project, but you should pay at least $200 for a project that is part of the city’s general fund or a city employee’s stipend, because that is what the contracts say.
If you don’t believe me, go to your local public library and ask someone in a branch office if they have a contract with a vendor—you don’t have to get the money from them, but if you do, make sure you call the department and ask them why there is a “payment plan,” and how it relates to the company’s contract with the municipality before you can buy that contract.
Can the municipality use government money if it loses a contract to a competitor? If you lose a contract with your current contractor and that contractor offers to pay the difference in your current contract, the municipality will almost certainly use that money, which is called “reimbursement in lieu of
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