Steps we took prior to this:

-Met with the contractor expressing our concerns throughout the project

-He stated to would correct it

-Came back saying it's done and final payment is due

-We obtained a report from a surveyor and engineer stating it is incomplete and incorrect

-We sent written notice requesting him to correct and complete, final payment will be made.

-Contractor responded with more invoices

Time for construction attorney. Usually you have to pay at least a portion to keep good standing- but consult an attorney to maintain both a strong legal position and leverage.

Ignore the invoices until he sues you. He won't.

Can't he just put a lien on their house? Then it's just a waiting game for him too. That would pop up in the future if they ever go to sell their house, I believe.

Better to resolve it officially and get it over with.

Correct me if I'm wrong, I believe in texas, for a homestead, both spouses need to sign the contract and the contract must be filed with the county prior to any work starting.

You need to be talking with your attorney. Texas laws only exempt primary residences from seizures, not liens. A lien can be placed even without a written contract. Verbal suffices.

Can't he just put a lien on their house? Then it's just a waiting game for him too. That would pop up in the future if they ever go to sell their house, I believe.

Yes, the contractor can put a lien on the property but he has to sue on the lien within a certain time, or else the lien will dissolve. At least that how it works in Georgia.

For reference if you want to file a lien against a homestead in texas. This is from Texas property code:

Sec. 53.254. HOMESTEAD. (a) To fix a lien on a homestead, the person who is to furnish material or perform labor and the owner must execute a written contract setting forth the terms of the agreement.

(b) The contract must be executed before the material is furnished or the labor is performed.

(c) If the owner is married, the contract must be signed by both spouses.

(d) If the contract is made by an original contractor, the contract inures to the benefit of all persons who labor or furnish material for the original contractor.

(e) The contract must be filed with the county clerk of the county in which the homestead is located. The county clerk shall record the contract in records kept for that purpose.

(f) An affidavit for lien filed under this subchapter that relates to a homestead must contain the following notice conspicuously printed, stamped, or typed in a size equal to at least 10-point boldface or the computer equivalent, at the top of the page:

"NOTICE: THIS IS NOT A LIEN. THIS IS ONLY AN AFFIDAVIT CLAIMING A LIEN."

(g) For the lien on a homestead to be valid, the notice required to be given to the owner under Section 53.252 must include or have attached the following statement:

"If a subcontractor or supplier who furnishes materials or performs labor for construction of improvements on your property is not paid, your property may be subject to a lien for the unpaid amount if:

(1) after receiving notice of the unpaid claim from the claimant, you fail to withhold payment to your contractor that is sufficient to cover the unpaid claim until the dispute is resolved; or

(2) during construction and for 30 days after completion of construction, you fail to retain 10 percent of the contract price or 10 percent of the value of the work performed by your contractor.

"If you have complied with the law regarding the 10 percent retainage and you have withheld payment to the contractor sufficient to cover any written notice of claim and have paid that amount, if any, to the claimant, any lien claim filed on your property by a subcontractor or supplier, other than a person who contracted directly with you, will not be a valid lien on your property. In addition, except for the required 10 percent retainage, you are not liable to a subcontractor or supplier for any amount paid to your contractor before you received written notice of the claim."

Added by Acts 1997, 75th Leg., ch. 526, Sec. 23, eff. Sept. 1, 1997.

Have you contacted the contractor and asked him why he’s still sending you invoices? You’re likely to get a better answer from him than you are from all of us.

Someone else posted a story almost identical to this one not too long ago. You should search for it and see how that got resolved.

Oh, THAT GUY. https://www.houzz.com/discussions/5894085/subcontractor-accusing-us-of-messing-it-up

What I would do (to avoid giving you legal advice)

Try a phone call, then if no response give this contractor written notice to repair or quit within 10 days, if no response get the work completed with another contractor, deduct from the balance and if there is money left, resolve. Time is of the essence.

You are DIY on the first task of your project. Lather, rinse, repeat for each of the next 60 tasks or do more research on each trade contractor before hiring. You won't find the trades you need on paid for referral services or big box stores as they are too busy to deal with retail BS and the services are not that picky, just costly.

I hate to point out the obvious here, but to qualify as a homestead, property must have an *occupied* home on it. If you don’t legally occupy the completed home on January 1 with a CO issued, the homestead date will begin the following January 1. Until that legal occupation happens, you’re acting in a business capacity as the General Contractor to construct the home with hired subcontractors. You as the homeowner, hired you as the business role of GC. You’re paying your time and effort with the “savings” you hope to achieve rather than a monetary salary.

You may want to beef up your insurance to be sure you are carrying the correct kinds, and vet your contracts that you are using with your subcontractors. Acting as the GC requires a lot of legal paperwork. And a lawyer. Good luck with your project!

The best solution and it always works to stop someone from sending invoices, send him an invoice of your own for everything you had to pay someone to fix everything that he screwed up.