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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 noraain8 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...
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