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Yes, you do have recourse here. They're the experts and they should never have accepted and started this job if they couldn't complete the job as agreed. So, you have the right to terminate and receive damages. What you want to do is raise the stakes on them. First, get an estimate from another contractor of the cost to put you in the position you would have been in had your defaulting contractor performed the job satisfactorily. Then, send your defaulting contractor a certified, return receipt requested letter detailing the history, terminating your relationship with them due to the default, and demand that they pay you an amount of money so that when the other contractor completes the job, you have paid in total no more than you would have paid him had they completed the job satisfactorily. Inform them that if they do not comply with your demand within a short specified period of time, you will have no choice but to file a suit against him for your damages. BUT, be sure to specifically mention that you will be filing this claim not only as a breach of contract case, but also as gross negligence, fraud and deceptive trade practice causes of action, which will entitle you not only to your damages, but also an additional amount equal to multiple times your actual damages as punitive damages. That should provide plenty of incentive to comply with your demands; but, if it does not, file your suit. Even if you have to file the suit, that's likely all you will need do. In my experience, they will settle this without a hearing rather than risk punitive damages and the judgments being on the record.
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