We are a Low Voltage Contractor for Hotels. We took on a job in Virginia which had delays and many redo's which we were not allowed to issue Change Order's for and 1-week before were supposed to be complete the GC removed us from project with an outstanding balance due to us of around $30k. We issued a property lien which got bonded off and now received a letter from the GC demanding we pay for their overruns of $70k because they switched contractors 1-week before the due date. The total project contract was $118k and they are claiming overruns of $100k, not quite sure how that is possible.
Depending on the reasoning for the termination of your contract (which is not provided in your question), the GC may have a case. However, just because they send a demand does not make this a good case for them. Frankly, I often see where the cost overruns claimed by a GC in situations like this look too high, so that is not a shock even if it seems impossible.