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What exposure is the Contractor facing: (i) Overall?
The contractor's exposure is to loss by not getting paid in full. It sounds like a commercial project, and developers will often use this situation to improve their position financially.
ii) For terminating his participation in project before completion?
If you terminate now, then there is no incentive for the developer to pay you, at least without a fight. If the developer needs to work done quickly, this would be your best opportunity to force a written agreement which would both acknowledge what is owed to date, and what will be paid for the final completion. I'll leave that up to you as to how you would protect yourself in the agreement. I presume that you already know what the time limits are filing a mechanics lien in Louisiana.
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It looks like you are headed in the right direction. If you do not get a satisfactory agreement for payment, then this document explains the workings of the mechanics lien in Louisiana: https://www.nationallienlaw.com/wp-content/uploads/2012/09/LA-Law-Summary-12-11.pdf Mechanics lien filing can be tricky and complex, so if there is a substantial amount of money involved in your claim, I suggest using a local attorney to file it for you. Once it is filed, you may proceed with foreclosure against the property and force the sale of it to pay you what you are owed. Again, this is not something that you should attempt on your own.
I will be around and back on line later this evening too.
Actually, been ill & off line since Fri. You can send follow up questions any time.
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