Issues with bad contractor now threatening to file mechanics lien

[Dustin Faeth]

We are finishing up a rehab project right now and the contractor that was doing the work was doing a horrible job, taking too long and causing a lot of issues, so I decided to fire him this past Friday and cut my losses.

I haven't paid him his final draw yet and based on the quality of work (or lack there of) and he was already at his time deadline based on our contract and had at least a third of the scope of work still unfinished or needing redone because of how bad the finish work was.

I tried to negotiate a final amount for us to agree upon to part ways and have the contractor sign the final lien waiver, but he is requesting more than what I think he deserves and he is threatening to file a mechanics lien against our property if I don't give him what he wants.

Any thoughts or suggestions on what my rights are and how I should handle this???