Need Advice: Contractor Dispute Delaying Project Completion in River forest

[Yosef Sara]

Hi everyone,

I’m looking for advice from anyone who’s faced a similar situation or has experience in this field. Nearly two years ago, I purchased a single-family home in River Forest, USA, which required extensive renovations. I hired a contractor with a solid reputation for working with international investors, and we agreed on a total cost of $495K, to be paid in stages. The contractor also committed to informing me and getting my approval for any cost changes during the project.

Unfortunately, several issues arose during the renovation:

1. Cost Overruns: After the final payment, the contractor claimed there were additional costs of $60K. I asked for proof (receipts, itemized costs, etc.), but he hasn’t provided any satisfactory documentation.

2. Delays: The project has been delayed by more than 8 months beyond the original timeline.

3. Work Quality:I hired professionals to inspect the work, and they found multiple issues and evidence of negligence in the construction.

As the situation became more complicated, I involved a lawyer and began mediation. Currently, the contractor is demanding $44K upfront to resume work and complete the occupancy permit, promising to discuss the additional costs afterward. I’m hesitant to pay such a large amount without seeing significant progress, especially given the prior problems.

Now, the contractor is threatening to file a **lien** on the property, which could cause major delays and additional expenses. At the same time, I want to complete the project quickly to sell the property and move forward.

My questions:

1. Should I continue mediation or pursue legal action (considering the time and costs involved)?

2. How complicated is the process of removing a lien, and should I focus on preventing it instead?

3. What steps would you recommend to minimize damages and resolve this issue efficiently?

I’d greatly appreciate any insights or advice based on your experiences. Thanks in advance for your help!