If you are the director of one company. During the construction of the building, the contractor decided to request the extra 50% cash and threaten to stop work. You have no choice since your financing is limited. In your opinion, how you will tackle this management situation.
I would review the contract and see what stipulations are already in place. If the contractor has already agreed to a specified amount, then that is the amount that they must be held accountable for. Anything above and beyond is irrelevant unless a change order or other written communication is evident.
If the contractor walks off the job, then, if there is a written contract (which there normally is) then you can sue for the amount that remains unfinished. Generally, this would be the cost that a different contractor would charge to finish the job, plus a little extra change.
If the contractor decides to stay to finish the contract, but does a substandard job, again, you can sue in order to get the job done right - but you have to prove that the contractor didn't adhere to code.
If there is no written contract - which is just bad business - then you can still follow the same options, but baseing everything off a verbal contract would take a lot more time and heartache.
The bottom line is this: Use a written contract, understand the contract, and enforce the contract. It's true what they say, knowledge IS power.
by jill-of-all trade7 years ago
I was curious if anyone else has had to do this...and the best way possible? I have a contractor I need to fire due to condition and breach of contract, the problem is how do I get my deposit back? His time and material...
by noraain7 years ago
If you are the director of one company. You have signed an agreement with a contractor for a new building. The term is 50% cash up front and 50% upon completion. During the construction of the building, the contractor...
by Ben Guinter4 years ago
I have an idea brewing in my mind for a future project, but I want this project to help people solve their problems. So, as a little research, I'm curious to find out what problems need solved the most.So, what...
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