I have a contract with a local, small town that calls for a 50% payment in advance and full payment on completion after inspection. The inspection was done 2 months ago and I have still not been paid for the first piece of work I completed for them.
I am working on a second project and have received my advance for it (although they took a while to get around to it). The contract, which they had drawn up, clearly called for down payment on the contract day which was June 6th. I was not paid until July 10th after I had already begun preparation work; furthermore, there is/was an agreement that the work be done this year.
Is it right for me to consider the contract voided for these late payments? I am considering stopping work and sending them a letter stating that they have voided the contract, and that I will not consider commencing work again until I am paid in full for both jobs in advance.
I would also like a 10% gratuity for the extra work I have done that was not in the original contract with them. How should I approach this?