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If the original job is finished, there's no "con" to closing the contract, and yes, if you're new then it would benefit you to get some positive feedback attached to your profile sooner rather than later. Since the client has no problem with it, go right ahead (but they should be the one to close the contract). Then you can do the new work as a follow up project, which also benefits your JSS, since there's value in having repeat clients.
In response to your other questions, yes, you'll get paid automatically provided the client has funded the escrow account or you've been using the time tracker correctly. You'll be able to keep track of exactly when the payment will be released to you by checking your transaction history.
As for the new fee, Upwork starts taking lower percentages once you've done $500 worth of work for the same client.
Heather S wrote:
Thank you Christine! I didn’t realize the service fee was dropped after $500 with the SAME client, I thought it was $500 in total regardless of how many clients.
No, unfortunately not (I wish!).