VAV terminal unit modulation

I have a Tenant Improvement that has VAV terminal units connected to an existing VAV AHU. The contractor and owner decided to save money and utilize stand alone control. Though the problem with their solution is that the thermostats only have ON-OFF function and cannot modulate between dead band and full cooling (since the project does not have re-heat). I have looked and cannot find much, aside from ASHRAE 90.1-2007 Addendum h, that states that a VAV TU has to modulate. I do not think I am wrong in assuming this control logic, since the opposite is both uncomfortable for occupants and a waste of energy for the tenant. Thanks