We signed with a construction company for an outdoor living area complete with a roof and built in fireplace priced around $50k. We have not paid anything up front but it's been 4.5 months and we just now got engineer drawings back and they want us to pay $20k more than the original contracted price we agreed to. If we cancel, do we run the risk of having the pay their 25% cancelation fee even though I have documented emails from the company lying about several different occurrences? Is this considered non "workmanlike manner?"
You should retain a construction attorney to review your contract and situation and to provide advice. It could be that the contract violates the Texas Home Solicitation Act, and you can declare it void.
A cancellation provision may be an unenforceable liquidated damages clause.
It could be that the contractor breached the Texas Deceptive Trade Practice Act by making representations to you which have turned out not to be true or as represented.
So, retain a construction attorney.
Good luck.