Did I make a mistake?

[Vicki K.]

Hi everyone and Happy New Year to you all! I wish you all great business success, prosperity and few headaches.

Speaking of headaches, let me share with you my current debacle in hopes of getting some reassurance that I haven't made a big mistake and if so getting some ideas for softening the impact.

So here it goes...

For one reason or another and against some of our core principles, we engaged the services of a GC for our latest rehab. I signed a flaky agreement that I will pay a 50% deposit and the rest in 2 installments of 25%.

I have been trying to finalize a commercial loan with a line of credit and was relying on that line to pay for a large portion of this rehab. I still haven't closed on that loan so I told him that don't have it and need to stop the work. I asked him to provide me with an account of what he has spent to date. The amount he gave me is about 1/2 of what I am estimating is left over. Besides, part of the money was to be used to purchase doors and windows from MY supplier (I know exactly what they cost). I confronted the contractor that he is overcharging me and since he has been ignoring me completely. I don't have the doors and windows either and he is not responding to anything. 

Total for the job was $12,000.

I paid him $6,000 as a deposit.

He offered me $800 and didn't say what will happen to the windows. 

I told him I should be getting my windows and doors + $1,600. 

In my calculations I am accounting for a profit of 20% which he told me himself is the margin he operates under. I am also accounting for his time in quoting the job and meeting with me a few time (although I consider this the cost of doing business for him.)

His contract has no early termination clauses or any references to termination at will. Contract states that in case of a dispute, both parties will cooperate to resolve it informally. I have been trying to do that but he is blowing me off.

What course of action do I have? I am in almost $4,000. 

He is a GC. I find it hard to believe that he can pull the "I've lost thousands because I tied up my people to do your job." This was not a long-term project. We are talking - window/door installation, attic blown in insulation, garage siding, house gutters and trim.

What is he trying to accomplish by not responding to me or attempting to resolve the conflict among ourselves? Is he hoping I will engage a lawyer and he can then counter-sue for breach of contract (early termination)?

Thank you in advance for your invaluable advice.