We are on a tight deadline to complete the project any advice?

He said he's been trying to find property that met your criteria but unfortunately there are cycles to what's available and it's been super tight for what you want. 

Unless you have your taxes sitting on their doorstep 60 days before the filing deadline and make some noise about, “I expect for my taxes to be ready before the deadline”,  they probably won’t be.  

Laws and deadlines are very specific and missing something will end up costing your time and money.

If they let the tenants run the show or ran a tight ship.

So it can be done if you really have tight subs and can push them to start each phase as soon as the previous one ends.There are some other tricks we've learned to improve quality and turnaround as well - prefinished siding and tongue and groove. 

Trying to keep an existing tenant often produces more trouble than it's worth.To answer your original question, you should absolutely give them a deadline and a consequence.

The people I've known who have been successful in this business- successfully in their own terms of it, meaning owning a rental or two up to unbelievable wealth in real estate, all, all, all had a tight REIGN On their business (Notice I said business, and not investment- because to buy this business costs money, the money is invested in that you might be able to get that money back unless you lose the business to the bank or it is destroyed by your customers).

Numbers are a little tight so I'm hoping to get an offer soon.

Option 1 because the numbers are too tight with Option 2.