• Contract rates amendment

I'm a construction contractor and have taken up a Civil Construction Project in Gurgaon, Haryana. Client is a developer of repute and making High Rise residential apartment.

What legal action I can take against them if they change the rates of item in the middle of project, wherein my contract clearly mentions that rates will remain constant (fixed) through out the period of  contract. 

My running account payments are held up since past 2 months and work is still in progress. I can't stop the work because then they threaten not to pay. If I continue they ask me to take a payment on revised lower rates, which will incur me losses.
What legal course can I take ?
Asked in Business Law from Gurgaon, Haryana
1) issue legal notice to developer to make payment on outstanding bills as per contract rate agreed upon  within period of 7 days from date of receipt of notice  

2) inform the developer that in case payment is not received you will stop further construction work 

3) if there is an arbitration clause in the contract you can invoke the arbitration clause in case developer fails to clear your dues 

4) in the alternative you will have to move court to recover your outstanding dues
Ajay Sethi
Advocate, Mumbai
28427 Answers
1542 Consultations

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1. You will be able to sue your client for breach of contract if an agreement has been executed between both of you.

2. If the contact mandates that rates remain constant the client cannot change them unless he is able to prove the breach of contract by you.

3. You can issue a lawyer's notice to your client seeking the release of payments. If the amount is not released even after the legal notice then you may file a lawsuit for recovery of money and also compensation against him,
Ashish Davessar
Advocate, Jaipur
19897 Answers
518 Consultations

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This is a clear cut case of breach of contract.  You have civil remedies as well as through consumer forums.  
You can draw them before the consumer forum for breach of contract defining it as deficiency of service and also can file a recovery suit for the damages in the civil court if they refuse to progress the ongoing constructions. 
If the amicable talks do not yield desired result, you may first issue legal notice to them demanding the requirements and an expeditious action on the unnecessary delays and hampering work. 
Upon receipt of a reply or not, if the object is not achieved, you may resort to legal action as advised above. 
T Kalaiselvan
Advocate, Vellore
18636 Answers
176 Consultations

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1.Have you got a work contract duly signed by both the parties?

2. What clause you have kept in the contract for dispute resolution of this type?

3. Is there an Arbitration Clause mentioned in the said contract?

4. If yes, then continue the work as far as possible against recorded protest and file an application before the Court for appointing an Arbitrator to resolve the dispute,

5. If there is no Arbitration Clause mentioned in the contract, file a damage suit before the Civil Court claiming the payment of the unilaterally deducted amount with interest, damage and cost.
Krishna Kishore Ganguly
Advocate, Kolkata
13913 Answers
308 Consultations

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