Why many contractors leave the work without completion?

Why many contractors leave the work without completion?
 It has been seen that many a time’s contractors end up leaving a project unfinished.
This raises the question of why this phenomenon occurs.
What are the circumstances which force contractors to leave the work incomplete?
What is so dire that they risk their reputations and leave a project unfinished? What compels one to not fulfill a contract?
 
These are the questions that we Endeavour to answer in these questions.
Let’s look at the circumstances which lead the contractors to abandon their work in the middle.
 
Funding problem: This is a major reason for abandoned works.
The funding schedule probably didn’t work out or there was some glitch in it. What happens is that when the funds are not released in an expected manner this could lead to heavy losses being incurred by the contractor.
If the project has run into funding problems, chances the contractor will wait out but only till the point where abandoning the project makes more sense financially.
 
Strikes: A few strikes here and there could be handled.
But if the political and market situation is volatile and there are numerous strikes which lead to the disruption of work and make procuring materials an impossibility then it would be likely that the contractor cuts their losses and abandons the work in such a situation.
 
Natural/ Man-made disaster: If the project has suffered because of a natural or man- made disaster, which has resulted in huge losses for the contractor in terms of machinery and man power then in such cases there is a possibility that the contractor can no longer fulfill their obligations and would choose to withdraw from the project, resulting in their abandoning the project in the middle.
 
Legal issues: The project could run into legal issues which could be a result of land approvals, building plan approvals or something similar.
Sometimes because of the legal cases, the court orders a stay on projects. Under such circumstances where the project would take a long time to restart, at times even that is questionable and the project might be ordered to be dismantled, so under such situations also contractors bail out of the project.
Bankruptcy: It could be possible that the firm that has undertaken the project has suffered losses elsewhere or due to unforeseen circumstances had landed itself into bankruptcy.
Now there is no way that the contractor could continue paying for the material, labor and machinery cost of the project and would have no other way than to withdraw from the project thus abandoning it.
 
Fraud/dishonest: It could also be possible that the contractors hired weren’t of good standing.
In case the contractors were fraud or were involved in dishonest practices they would simply abandon the project in the middle, when they have sufficient funds in hand.
No legit contractor would ever do such a thing and risk never getting future work but people might get duped by a wrong company which portraying itself to be a large organization or something similar.
Thus, it is necessary to have background checks of companies and take security deposits etc.
 
Bad quality and workmanship: It could happen that the company that won the bid is not up to the mark and the developer or the owner of the project is not happy with the quality of work and the workmanship of the contractor.
Then they could influence the working environment to be such that the contractor cannot work there any longer or could legally demand the contractor to leave the project if it is no longer up to their standards.
 
These were some major reasons as to why contractors leave work unfinished.

This is a major reason for abandoned works.

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