Changing the contractor mid-way in the project..

[sholla]

Hi,

Our contractor recently told us that he is having recurring health problems,
apparently related to the heart valve. Couple of times he spent the entire day
in the hospital for check-ups and frequently his mobile is not reachable.
In fact, for the last major activity of concreting the ground floor roof, we had
to run around along with his deputy. We are seriously thinking of to change the
contractor. Now I understand that in this industry, changing the contractor is
really discouraged. I would like to know if any of the members had to go
through this and what their expeience was.

Our construction agreement is now only for the civil structure and it is a
item rate contract. One person told me that in a situation like this the new
contractor's item rates will be higher because the margins on the footing,
plinth and other ground level structures are higher and a contractor expects
to balance this high margin activity with the higher floor activities. Since the
new contractor has missed out on the higher margin part, his rates will be
necessarily higher. Does this make sense ?

Any other pitfalls ?

Thanks
Sholla