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I absolutely would suggest you pursue the contractor. First, raise the stakes on him. He is in breach of contract
and you do have recourse. Send him a certified, return receipt requested letter detailing the history and demand he pay you the $4,000 it will cost you to have another contractor replace the driveway. Inform him that if he does not comply with your demand within a short specified period of time, you will have no choice but to file a suit 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, he will settle this without a hearing rather than risk punitive damages and the judgments that will basically prevent him from doing business in the future.
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