How should I handle a Contractor Dispute?

[Rob Carmody]

I have been through the worst experience with this drywaller.

1. I am not using a general contractor, I have been organizing the labor myself. I am doing this completely remotely, which has been a massive pain/lesson learned (topic for another day).
2. I signed a very high-level agreement (i.e. expectations simply say "drywall and paint") with him for drywall and paint work at my home for a total of $10K
3. I have paid $5K as a down payment as well as ~$2K in materials over time, as needed
4. There have been multiple break-in's in the home, and he has done me favors of working with the police, and boarding things up. He has had ~$1K worth of tools and material stolen, even after I warned him not to leave things there.
5. The timeline has shifted over and over again. It was supposed to be done in mid-July and he keeps pushing it back week by week. He has quoted the break-in's as to why the timelines keep shifting.
6. I have requested pictures over and over again (again, completely remote), and I have only received a handful the entire time. From what I've seen through pictures, the quality is sub-par (e.g. bad patching, no primer used, no corner bead used, etc.).
7. I have recently started to get more strict on timelines (this is now 2mo delayed), and now he is halting the work. He just said "now I don't feel appreciated, let's settle those favors I did you before we proceed any further" and sent me an invoice for $2K for the lost materials + time with the break-ins.

Overall, the job seems to be ~80% complete but with poor quality, and I will absolutely need to hire someone else to fix his mistakes. I thought I was being flexible with the timelines because he had helped with the favors, but it's gotten out of hand at this point.

1. What am I truly liable for? I'd assume the 'favors' don't constitute payment.
2. What is the best way to cut ties with him? (I don't want him to put a lien on the home or break-in himself and mess things up)
3. Any other recommendations you may have.