What action can be taken if the contractor is not performing its works according to the renovation/building contract?
If the contractor is not performing as agreed and expected, immediately communicate your dissatisfaction to the contractor. Be professional about the matter - state the shortcomings and agree on a course of action to remedy the problem. You may discuss your grievances verbally, but always the problem, you should consider terminating the engagement. In such circumstances, terminating the contract is likely to save you more losses and delays in the long run. This would also be a good time to speak to a lawyer on your rights against the contractor and liabilities that may arise from the termination. payments are made and before the retention sum is released.
In the event the contractor refuses to rectify the defects after reasonable opportunity is given, the owner can proceed to engage another contractor (usually called a 3rd party contractor) to finish off and rectify whatever is outstanding. The cost of engaging the 3rd party contractor for that purpose can be set-off against any balance outstanding due to the original contractor or the retention sum. In the event that the cost exceeds the unpaid balance, the difference can be demanded and claimed from the original contractor.