Contractor 70% over estimate w/no warning, demanding money

[Andy Schwaderer]

Hi guys-

I hired a contractor to do exterior and interior renovations at an apartment I own. Exterior work was to be completed first, then move to the interior. Cost of the exterior was estimated (agreed to and signed) at $24.5k. The estimate included language that any unforeseen items discovered that led to overages would require written notification, a new signed agreement to that work, and payment up front. 

That estimate was signed in May, flash forward to September. I had been in weekly contact w my contractor, there had been no notice of unexpected overruns. Suddenly though, he sent an email detailing over 17k in overruns (so, a total of ~41k). The costs are for labor, material but are not accompanied by invoices, receipts or anything that can be verified.  He refuses to send proof. 

I've let the contractor go, work has stopped. I previously sent $18k for stage draws that met work completed. I plan to verify work was completed and will pay the remaining $6k (brings paid to 24k per original estimate), but these overages are troubling. I cannot just pay him without more proof. I've asked repeatedly for him to provide documentation on these alleged charges. This morning he sent a final invoice, stating he "will not provide any additional information to you in the form of labor costs, receipts, etc. Those will be provided in court, if/when necessary."

The whole thing seems like a bit of bait and switch. I certainly would prefer to avoid legal fees, but cutting him a check under the circumstances just isn't happening. He's asked me to pay the remainder, and then promises to complete the remaining work. I will not have him do anything more, we just have lost all trust with each other. 

My plan right now is to verify the work is done, issue payment for the agreed upon portion, and ask him again to show invoices/receipts for the overages. If he will not, I'll have to find an attorney.  The property is located in Indiana. 

Thanks for reading!  Appreciate your insight!  Language from signed estimate is below. 

"If unforeseen rot, deterioration, insect damage or poor structure is found and is found that it is necessary to replace the disturbed area, not included in this scope of work, an Additional Work Agreement will be written at such time for such repairs and costs will be due payable prior to work being completed. Payment due prior to repairs being made."

All work is to be completed in a workmanlike manner according to standard practices. Any alteration or deviation from above specifications involving extra costs will be executed only upon written orders, and will become as extra charge over and above the estimate. All agreements contingent upon strikes, accidents or delays beyond our control. Owner to carry fire, tornado and other necessary insurance."