Contracted to have several items performed at our home Power wash and repair cracks on the exterior and replace 11 windows. Payed contractor halve the amount with the balance to be paid upon completion. Contractor powered washed most of the house with lots of issues and did not return to correct. His sub came in to replace the windows and after ripping out 3 of the eleven discovered that 3 were the wrong kind. Contractors "Project Manager" after speaking with his boss offered a credit and we accepted ( little choice since the windows were already ripped out) We deducted a partial amount from the balance for the work still not performed as well as the credit amount and payed him the balance. Contractor cashed all the checks including the last one with notations as paid in full. We do not trust him now to complete the rest of the work and offered to payed him an additional amount for the power wash he already performed. The amount that he stated we should have deducted which is a quarter of what we deducted and is a lot less the is being quoted to us as an amount needed by other contractors to finish the job. We also found out from the village that he never pulled the proper permits. He has now sent us a notice of intent to place a lien for more than the original balance. What are our options?