Recovery starts with an independent assessment of work in place, remaining scope, and cost to complete, followed by a contract review to establish remedies and obligations, then a re-planned delivery approach — with the existing contractor or a replacement.
Step one: establish the facts
Document work in place with photographs and quantities, not opinions
Reconcile payments made against work completed
Inventory materials on site and paid-for materials off site
Confirm permit status, inspections passed, and any expirations approaching
Verify lien waivers received and outstanding subcontractor exposure
Step two: understand your position
Contract remedies: cure notice, termination for cause, termination for convenience
Bonding and insurance: is there a performance bond, and what triggers it
Lien exposure from unpaid subcontractors and suppliers
Warranty and responsibility for work already installed
Step three: plan the finish
Cost to complete is priced against a re-scoped set of documents, not the original contract sum. Replacement contractors price risk into unfinished work they did not start — expect that, budget for it, and select on capability rather than the lowest number a second time.
Common questions
Should I terminate the contractor?
Only after the facts and contract position are documented, and usually only after a cure opportunity. Termination done improperly transfers the legal exposure to the owner.