Never do that .

I agree with Itotland 100% You are getting a very bad deal here. Seek your legal counsel and be very thorough. How much documentation do you have? Have you taken photos and/or video of the work or lack thereof? See how much detail you can provide to your counsel as it can be very helpful. Good Luck!

The three previous responses are all correct. While your intentions were good with your contract, it appears you missed some important elements that should have been included in the contract. Hopefully, the contract includes the contractor's information (i.e. business address, points of contact, contractor's professional license number, insurance information, bond information). It also should have a construction schedule and the appropriate bench mark dates which should be tied to a payment schedule, since he asked for half of the full fee upfront and you agreed to this, I'm guessing this information is missing. First red flag.

The fact that your contractor asked for funds up front is a good indication that things aren't right and his assertion that paying the subs a check doesn't mean they can't put lien on the project.........that's BS.

I too seriously suggest you consult the legal advice from a lawyer who specializes in construction law.....and for gawd's sake don't give him another penny. I'm betting your chances of recovering any monies are slim to none and even if you end up hauling this guy into civil court and win a judgement, if he hasn't got a pot to piss in or any assets in his name or company name (that's if the company is actually a licensed company), what or who are you going to collect from.......?

Unfortunately, in this economy and the down turn in the construction industry, there are more of these types of guys out there trying to survive at your expense then we can shake a stick at........my personal opinion is that we should be able to nail their one good foot to the floor with a framing nail gun and shoot them with a roofing nailer as they spin in circles while we wait for the LEO's to come get them.

By chance, the only permit he pulled.......was it the Demolition permit? Guess what, the demolition permit doesn't require a license and if that's it, then I'm betting he also pulled that in your name.

I hate to be the bearer of bad news but this has all the indications of a scam artist at the least or an out right con artist fraud and the $22k would make it a felony.

Your first steps should be to; A) document all work done to date, you need a summary of times and dates they were actually on site working (photograph everything done.... you can't over photograph), B) an accounting of all receipts for materials bought (hopefully they gave them to you) and all labor charges, C) you need to check with the professional licensing board and get his information (contractor's number, insurance information, bond) and confirm that they are current, and D) you need to make an appointment with a construction lawyer.

I wish you the best.

I agree with the previous poster (Kutch). You've been victimized and need to execute damage control. You can try to recoup your loss through various methods like those mentioned above but the reality of getting your money back or holding this joker accountable for his actions is slim to none.

File a complaint with your state's contracting licensing under his number, if the paperwork has his company name listed as an LLC you look him up and file a complaint with your Sec of State (some people file sole proprietor d.b.a X through this agency), contact a lawyer that specializes in this type of situation, and share your story. Look up his name/company name and post your story to any review sites/listings associated with person. On a personal note...there is a new show that airs on Sundays on Spike TV called "Catch A Contractor" (I'm addicted to this show). Share your story there too if you can - maybe something will come of it, maybe not but it's another place this persons name/company name will show up.

As for deposits on a job. Yes, that is standard operating policy for most contractors. This sets up a sense of commitment from both parties, the contractor and the client. However, half of 44K up front should have thrown up question marks/red flags. If this had been my job the overall total would be broken down to scheduled payments corresponding with stages of completion. 44K divided by 6-8 payments depeding on your financial abilities with the first being the deposit, the second due at completion of demo, third being due at completion of framing, fourth being due at completion of elec/plumb/hvac, etc, etc. Whatever would have worked with/been appropriate for your project's Job Scope.

We never, ever, ask our client's to procure materials as there are lots of little details/considerations/mitigating factors that the average homeowner would be unaware of, thus potentially causing more complications/set backs/time in returns to secure the the proper materials/etc. That having been said if a client ASKS to provide their own materials, we help educate them in the type of materials needed, why that material is preferable to another, suggest vendors/sources we trust, and so on and so forth in a effort to reduce their investment on the project.

I hope your find resolution to your situation in the very near future.

~ My Two Cents

I am not sure where you are located and what are the prevailing laws governing remodeling activity in your state.

In California (where we are), contractors are not allowed to charge more than 10% or $1000 (whichever is less) as a deposit for work.

Furthermore, progress payments must be proportional to work done and charged only when the work they relate to is indeed done.

These laws are often disregarded by many (most?) contractors here (and, as your post indicates, elsewhere as well). And, as long as that riff-rough class of contractors could get aways with this, they will continue the practice. What is amazing to me is how often owners 'play along' and pay large sums to contractors ahead of actual work getting done.

What amazes me time and again is how often homeowners 'play along' and pay large sums to contractors ahead of actual work getting done.

The only way to combat this problem is for homeowners to better educate themselves (very easy in the information age) and to do all needed due diligence when evaluating and deciding on a contractor. The problem I often observe is that a low-price trumps all common sense and due diligence. The results, unfortunately, are inevitable and predictable.

In your particular case, apart from a legal track (which would gain you little to nothing I suspect), you have little recourse. This contractor is holding all the cards, as it were.

My suggestion is to be nice, persistent, friendly and steadfast. Keep up low-level pressure on the guy (he will probably abandon the project if you apply too much pressure) and get out of him as much work as you can. As work progresses (and I hope it will), play the opposite game - slow down and delay as much as you can payments so as to even the odds a bit.

Good luck!