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.
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