@Eric Teran I'm not sure if he's insured or not. However, the 1st home-ownership program I use (NACA) has to approve of the contractor before I can use him and he's one of their approved contractor. I am reaching out to them to see if I can get that insurance information. Another contractor told me about making a claim against his insurance. I didn't know it was an option. Unfortunately, NACA isn't very good at returning calls or emails in a timely fashion and with COVID, it's a whole other delay.
@Amy D. The wall fell on the Monday of Thanksgiving week. It was rebuilt within a week. The pipes that broke because of the wall however are still not fixed but his plumber inserted some rubber tubes to connect them. I'm not sure what you mean by when HIS insurance gets relevant. But I'll have to see if insurance covers it if and once I get his insurance info.
@Pride Davis The Contractor handled pulling the permits. He later gave me a Basement foundation and plumbing plan from an engineering company. After the wall fell, I wanted the structural engineer to confirm that the foundation was well done. He did. I do know that my contractor had to cancel the first scheduled plumbing inspection because the wall fell on the same day. The inspector that is supposed to check before you start sheetrocking has not shown up yet. I don't see the sticker for that.
@Nat C. I have started documenting email/text communications, pictures, getting my timeline right, re-reading the agreement we signed and essentially building my case if needed.
Regarding lawyers: I have reached out to a lawyer who has advised that trying to negotiate would be better and less costly, to your point @Mike Dymski, than going to court or arbitration. I tried the compromise route as advised by my lawyer, wrote up an addendum to hopefully agree on some new terms and threw in some addtl money to the established budget to complete the work amicably but he doesn't want to. My friend (who told me about Bigger Pockets) has linked me to a few experienced people in the field, here in Jersey, with whom I've spoken with to see what can be done and to even gauge how much things should really cost in the area.
I'm leaning towards firing him and having the work completed by another contractor and hoping for the best. The only silver lining I can see right now is that the bank has to approve of how much money they'll pay out to him based on the work that was done from the SOW established. Since I stopped the work, he can't take it all and run. I just know that agreeing on what the Change Order and/or Draw should be will be another fight. I imagine NACA would step in and decide if this turns into some crazy drama. I have alerted them about my situation so they are aware. Going to court, suing anyone or being sued is definitely not where I want to go with this.
And thank you all for the advice and for the various scenarios.