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Good morning. Even if the contractor were to file a lien, the contractor can do nothing with that lien until and unless he prevails in a suit against you. And, given your facts, he's not going to prevail. This letter is intended to intimidate you. Rather, respond with your own letter and let the contractor you will be raising the stakes on the contractor. In that letter, let the contractor know you will be filing your own counter suit for breach of contract demanding actual damages for any costs you incur in excess of what you would have paid for the project had he completed it competently and timely. BUT, also 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, deceptive trade practice, and fraud 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 resolve this without a suit, but, if it does not, file your suit. You have the upper hand as the contractor is the one in default here.
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