Question

A has contracted with B to construct a factory in Oman. The first payment has been received by B and started working for three months. Oman has adopted new regulation relating the security in the factories. This regulation required new materials and changes in the construction of the factory. All of this has raised the price of the actual contract. A has asked be to include the materials and the do the changes according to the new regulation adopted by the government at the same price and conditions according to the contract signed. B has decided to stop the work and asked to renegotiate the contract and the prices. A has no budget to finance the new materials and the changes in the factory and asked B to continue work and do the changes.

.5. What action A should take to make B start work even it doesn’t have the budget for the changes adopted by the government?

6. In your conclusion, you should provide a good solution for A and B to continue to work together and build the factory with the new government requirements.

Answer 1

[5] The following action A should take to make B work even it doesn't have the budget for the changes adopted by the government.

a- A by promising B to pay the extra amount in future can convince b to work with the changes made by the government even if A doesn't have the budget.

b- By mutual consent among both and settling the matter between themselves can make B work for A to continue with the changes that has to be made in the contract issued by the government.

c- A can convince B to pay on A's behalf presently - so that A can make B work with no budget and continue with the changes made by the government.

d- Even A can frighten B to bring the case in the court of law so that it can make B work with the issued changes by the government even without extra budget with A

[6]In conclusion i would like to provide with the following solution for A and B work together and continue to build the factory with the new government norm

The following is the solution for both in which A can B can talk over this contract that the extra budget will be provided by B according to the newly issued changes made by the government as A doesn't have the extra budget against which A should provide B certain share in the factory to be built so that A and B both acn work together and continue the contract along with the newly brought changes issued by the government and if in case A doesn't want to given the share in the factory than in that case A can contract with B to presently provide with the budget against which A will repay the amount in future along with some extra compensation. In either of this way A and b can continue to work together even if A doesn't have the budget .