I'd terminate the contract and get the money back. You'll have to wait for somebody else to have time to take it (and it's too bad he left you with a hole instead of a semifunctional kitchen!!), but that's still better than how things are looking now...

Do get other contractors too look now, however, before breaking the prior contract. Depending on how far the work progressed, other contractors may not be willing to take over somebody else's work, especially if there are permits requiring inspections, etc. They don't want to have to redo or live with unknown stuff behind the walls...

I respect contractors. That being said, I’d test him with a request for all the money you gave him plus 30% and all finish materials already purchased. Truth is that it will cost you to find someone on short notice (if that’s possible). He wants out of your job so he doesn’t lose the bigger one. See how bad he wants out. If you keep him, chances are good that he will cut corners to get you done - again not to lose the bigger job.

Agree with the above. He's already told you that he wants out. You won't actually lose time by hiring someone else because he'll probably delay or half-heartedly fit you in between his other jobs once a week.

If he seems like a decent guy, ask him for referrals to other local contractors. These guys don't work in isolation, and a colleague of his who knows the situation may be more inclined to squeeze you into his schedule sooner. Good luck, this is such a hard place to be!

"When our contractor called us last week to let us know he has pneumonia he told us that we could terminate the contract with him. We let our contractor know that we would like to keep the contract with him and have him complete the work."

WHY? WHY WHY WHY???

This is a guy who has no clue how to schedule. At the point he was behind, he SHOULD NOT HAVE DONE YOUR DEMO. He should have given you the opt out, in FEBRUARY before the rip of the kitchen, and told YOU to delay your flooring, which could have been done after the kitchen with a simple shimming up of lower cabinetry install.

Check your local area for good referrals, get your money back , and move on. In the meantime, a good contractor can give you a temporary counter space with a sink, you put the fridge somewhere with a microwave, and you have to find someone to finish the entire job.

One word: RUN!

I wish I didn’t have any BTDT experience with this type of issue. It never ends well. Get your money back and start looking ASAP for replacement contractors. Jan has a great idea about giving you a temporary kitchen.

Fire him. I once had some circus outfit installing floors for FOUR freaking months. Turns out it was a 3 day job for floor installers that actually work full days and don't take long smoke breaks and have major personal drama every other day. Fortunately, I wasn't living in the house. I got it done eventually. Never again.

Never let anyone begin until they can complete the job without moving on to others. That should be in the contract. Start through finish -straight through.

Your gut reaction is right. He wants to skip your job and move on to the big one when he is feeling well. Cut him loose and get your money back. I have learned from hard experience NEVER to let the money get out in front of the work. Never half down.

Thank you all for you advice and insight. It has been an eye opener.

I would like come back and reply to each of you later. My baby has a lung infection and he is not happy I am on the computer.

Many of you suggested that we get our money back. Our contract said we can break our contract with him, but did not say anything about getting our money back. The contract states that if we break the contract we will pay him $200.00 for every hour he has worked. Our contractor did say over the phone that he would figure out how much we own him. That moving the return air vent was a much bigger job than he expected. We are pretty sure our 50% deposit is gone to pay his monthly bills and to pay his one employee.

Thank you all again

Don't let him get away with keeping 50 percent of the money for a kitchen renovation when he only did some tiny percentage of the work. No way, when this is completely not your problem that he could not finish.

You would still have to pay what, 98% of the cost of a renovation to some new person. It is not equitable that you lose all that money through no fault of your own.

Your contractor has pneumonia and has indicated he wants out. Terminate the contract.

First off, I am so sorry this is happening to you. However, I think you have a great opportunity here since he is giving you an out. TAKE IT. And get your money back too. Doesn't matter if he paid his staff with the money or went to Disneyland or put it in escrow - he didn't spend it on getting your project completed. Obviously, pay him for the time spent, but little more. If it's getting sticky, you may want to get legal counsel about your options, or contact your local news/consumer protection bureau - they may be able to nudge him in the right direction.