Paypal hasn't covered digital or virtual goods since at the very least 2009 when I started reading their TOS. This is nothing new and has been there for a very long time.
They simply do not have the time or ability to act as mediary going over says functionality in a script or anything similar. There has been numerous stories here before on this, and people have been shipping CDs with content and the script files on, just to have a shipping number and are in fact selling physical goods.
For amounts this large, I do not see why you do not go through a site built for this, like
Freelancer.com.
It costs a bit more but your money are protected and milestones can be set, payout as work gets done, reviewed and approved.