To avoid abandonment of a project, what action should a contractor consider if there are delays with payments?

Negotiating new terms is a strategic approach that allows a contractor to address payment delays without abandoning the project. By engaging in discussions with the client or project owner, the contractor can seek to establish a mutually beneficial agreement that may involve adjusting payment schedules, clarifying expectations, or renegotiating the scope of work. This proactive communication can help maintain a positive working relationship and keep the project moving forward, ultimately reducing the risk of abandonment.

In contrast, completing the job regardless of payment issues could lead to significant financial losses, as the contractor might not be compensated for their work. Ceasing all activities would halt progress and likely lead to disputes, creating further complications and possibly legal issues. Filing for bankruptcy represents a drastic measure and could signal failure in managing finances or projects, which is not a conducive approach for maintaining or salvaging a business relationship. Therefore, seeking to negotiate new terms is the most viable option to address payment delays constructively.