OP, "He continues to ask us to stay out of the permit process even though there has been mistake after mistake and delay after delay (I did not call out the others)."

If this was the real world (LOL), you would sched a meeting and "call out" everything which has gone poorly. You would demand a plan to get things back on track and have him describe how he will prevent future mistakes. This is exactly how Performance Improvement Plans work in the employment world when an employee is working sub-par. You are the employer.

His response will determine your next steps.

He wants you to dump him. He's got higher paying work. Better get your bids before you let him off the hook as you may be shocked.

I wouldn't waste my time asking him

how he would prevent future mistakes.

You're not his employer, you're his customer,

and he isn't giving you good service.

I'd send him packing ASAP.

I agree we are his customer and he does not have an obligation really, we have tried to be a good reasonable customer too (very much so), but these delays, mistakes and cover ups are just too much. He has connections with a friend that he does a bunch of biz with, that is how we got the connection, so think he won’t walk on us, but we are thinking we have to keep on top of it and keep push him forward and in parallel shopping to get other bids from reputable contractors in the area, but my guess is they are going to come in much higher than what we have agreed with him for what is left to finish off Phase 2.

In our market right now contracts are in extremely high demand so I think we’d pay a premium for a mid-size project like this if we went somewhere else. I guess only one way to find out.

New proof of the old saw: You get what you pay for. And now it still tempts you!

The work is acceptable, the price is acceptable, the time frame is not. It'll be challenging to improve on all these. Get several quotes from other contractors after you check their references. Just as you would if you were beginning the project. If you find a better total package you can change.

Worthy, not sure that is what happened here, the price problem is that we are part way through the project, Phase 1 is done but we went over the expected % of the project for Phase 1, but he still plans to land the overall project in budget. Trust me we did not seek out a “cheap” GC we took a recommendation of a trusted person, hoping for quality. Our overall budget for the project was very reasonable. I also think since we started pricing and demand have just gotten higher, so shopping around we expected we might be stuck. But we will see.

Reminds me of the Iron Triangle. Fast, good and cheap; pick two.

Sounds like you currently have the good (you're happy with the finished product of Phase 1) and cheap (at least compared to what prices will likely be if you seek new bids). And I'm honestly not sure you'll get fast by going with a new contractor--the good ones are currently booked way out, so your end date may actually be sooner if you wait it out with this current contractor.

So I'd lean to staying with this one. I will add this caveat though, that this is a relationship between you and your contractor. If you feel the trust in this relationship is broken to the point where you don't feel you can continue to work with him, then it's time to move on, regardless of the fast, good or cheap.

I wonder if it really is "cheap" the estimation right now is ~260k for ~900sf two story addition off the back with the following scope (this does not include the Design fees we paid and no HVAC, just the Build).

1. Rear Addition - Scope includes but is not to limited to the following:

• – Site preparation and protection
• – Demolition and hauling
• – Foundation and footings
• – Framing and sheathing
• – Installation of windows and doors (per specs)
• – Installation of waterproofing, lathe and stucco (texture to match existing)
• – Installation of roofing underlayment and composite shingles (to match existing)
• – Installation of rough and finish electrical components to facilitate fixture installation at noted locations (per specs)
• – Installation/alteration of rough and finish plumbing components to facilitate noted installations (per specs)
• – Installation of finish plumbing fixtures
• – Installation of insulation (R-13 exterior walls, R-30 ceiling, R-19 floors)
• – Installation of drywall, tape and texture to match existing (1/2” walls, 5/8” ceiling)
• – Finish carpentry, trim, baseboard, and door installation
• – Installation of remaining kitchen cabinetry
• – Staircase installation (per specs)
• – Preparation for installation of washer and dryer (owner provided)** Bathroom Specs generally consistent for both Bathrooms (2) excluding Tub/Shower stall install in lower half-bath
  – Installation of tub surround and floor tile (including niche and bench (exact specs to be determined)
  – Installation of Toilet
  – Installation of Vanity, Sinks, Faucets
  – Installation of Tub (1)
  – Installation of Deck Footings and Framing (approx. 125-150 sq/ft)(per specs)
  – Installation of Decking (Con Heart Redwood)
  – Exterior surface preparation (texture to match existing) prime and finish paint
  – Interior Surface preparation prime and finish paint
• **Additional Note(s)
  – Owner to contract directly with HVAC Installer (Hassler Heating) for any additional heating/air conditioning installations. GC to assist in logistics, coordination and overseeing installation.
  – Owner to contract directly with Shower Glass Installer for shower any custom glass/door installation, coordination, and overseeing installation.

2. Allowance Items:

1. Half Bath
– Vanity/Sinks/Faucets ($850)
– Tile (Floor) ($5.50 sq/ft)
– Toilet ($400)

2. Upstairs (Full) Bath

• – Vanity/Sink/Faucet ($1,250)
• – Tile (Tub surround, Floor) ($5.50 sq/ft)
• – Toilet ($400)
• – Tub ($400)
• – Shower valve/trim ($350)4. Laundry

– Custom Sliding/Bifold Door System ($850)

5. Additional Allowance Items

• – Flooring throughout (2” oak or other) ($2.85 sq/ft)
• – Interior Doors (3 or 5 Panel) ($185 per door)
• – Windows ($8,500)
• – Exterior Sliding/Bi-fold Door ($5,500)
• – Bedroom Closet bypass/bifold door system ($250 per door)
• – Interior staircase railing system ($1,250)
• – Door Hardware (owner provided)
• – Recessed Can Lights ($22.50 per fixture)
• – Hanging Fixtures and/or Wall sconces (owner provided)