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Homeowner is requested refund after work has started....

Texas

If I have started a job and a concrete slab was poorly poured by sub contractor what do I do about correcting the issue if homeowner said they are cancelling the job and ask for me to return the entire amount they paid upfront. I wasn't given a fair chance to fix issue ...file it on insurance or whatever. Now they are threatening me with police and theft charges...which obviously it's not....what is my next move on this matter ?

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