My contractor has blown throw the allocated budget

[Nwakaego O.]

Hey everyone, 

I'm new to this home ownership deal and am currently doing some rehab to my basement. I have had to stop all repairs being done to my house because the contractor sent me a bill of an additional $38K on a project that was already budgeted to cost about $80K. No Change orders were submitted prior to this so-called work he considers additional, as specified in the agreement we signed. I keep going back and forth with him and it's exhausting. This new invoice he sent to me is broken down in Materials / Labor,Overhead & Profit but they aren't verifiable. I have asked on several occasions for him to provide the invoices directly from the subcontractors that he's used and he hasn't done them still. I am very frustrated with him and this whole rehab process. 

I would like to know:

1. What those in this situation have done to resolve this and stay within the budget.
2. How can one verify the real cost of a project to ensure that you are not being overcharged. I have the two architectural drawings of the work to be done to my house.

Thank you.

[Bill Kramer]

@Nwakaego Onike

As a contractor, As soon as he recognized additional work outside the original contract was needed he should have stopped all work and communicate with you. Then at least given you a ballpark price.

Dont pay him. At least not until he can prove he did the work. This happens alot in construction, projects go over budget. But you have to communicate that, or risk not getting paid.

The ball is in his court. Prove it or its free.