General contractor overcharging by 70% - help!

[Sophie Lee]

Hi everyone, I'm sure my story is a common one, but I just received my general contractor's latest invoice and am starting to seriously panic. 

We are nearing the end of a remodeling project of a house my husband and I plan to live in (i.e. we won't sell, which means we won't recoup any of our investment). We signed a contract, based on an estimate (not quote) of $99K. The contract specifies twice that any changes (with the price increase specified) should be agreed to in writing.

We have made a few changes in work scope along the way, post-contract signing. At first, the general contractor warned us of the expected price increase that would come with each change. But after the first two or three minor changes, he stopped warning us. I know it sounds insane, but I assumed that since he'd started out telling us of the expected price increase for changes, he would continue to tell us for subsequent changes. We trusted him to flag any major cost increases for any changes.

He didn't. The first three invoices charged what we expected (and the estimate of where we stood in the overall estimate) was expected. But the fourth invoice - BAM! - suddenly raises the cost of the total remodeling project by 30%, and with the next three invoices, the total project rose to 40%, 50% and now 70% above the estimate. 

At no point did he warn us that the price would rise by this much, and we never signed anything in writing. Had we known that each change would raise the cost by such a magnitude, we would not have made the changes.

We've consulted a lawyer briefly, who advised waiting until the work is done before starting a negotiation. Technically, the general contractor is in breach of contract. He has provided some invoices to justify the higher costs, but honestly, he should have warned us that some of the changes we verbally agreed to would DOUBLE the cost of that part of the project. We had no idea.

I am almost out of money and feel like I've been taken hostage. We still have another invoice pending.

Has anyone else been in this situation? What did you do? I'd really appreciate any advice. Thank you.