Dont' Know What To Do

[Valentine Jane]

A contractor has been working on our custom home for ten months. He's recently ran himself out of money and my wife and I have been doing some of the work. We don't have any more money to give him. The contract stated the finished amount. I've been buying a lot out of my own pocket. $6,000 worth of hardwood flooring, all the appliances, door hardware, toilets and sinks all came out of my pocket. He hasn't been at the house for five days and we've been doing all the work. I have all his tools and the house is locked. He can't get in until he calls us, explaining where he's been. What are my legal options if he bails out on me?

[Rich]

I apologize for not answering sooner.. I totally missed your post.
Anyway, it will depend on what your contract states in many cases. Look for language involving breach of contract. Essentially your contract gives both parties a "consideration". Your consideration to the contractor is funds.. the consideration from your contractor to you is a completed home. As long as the contract is signed by both parties there is nothing else in there that will refute that you have a contract with mutual consideration.
Your recourse would be to sue for damages, missed completion date, monetary considerations for rent or other accomodations, etc. I would start by contacting a lawyer for some advice.. most often they will recommend a paper trail. Typically they will want you to send a certified letter stating that they are in breach of contract and will require immediate remedy of the situation or further action will be taken. It's up to the lawyers style at that point on whether it's a "Hey dipsh*t you better get on with it or my lawyer will kneecap you" or whether a lawyers involvement is even mentioned.

[grumpydasmurf]

Seems like the Contractor under bid. Depending on the type of contract, cost plus, fixed fee, etc... will depend on your legal recourse.

Assuming it is a fixed fee, like it seems to be, you can legally force him to finish the job. Also you may be able to have his insurance pay someone else to finish.

I feel sorry for the contractor because I have underbid. Your following actions will be dictated by local laws and your morals.

[Rich]

You mention morals of the homeowner - what about morals of the contractor. Even if they did underbid the project - it doesn't mean that just not showing up is Ok. I agree with your other comments grumpy but not bringing morals of the homeowner.. it should be the morals of the contractor.
If I had underbid the job I would suck it up and finish the job.. and I certainly wouldn't just leave it. Leaving a project does more harm long term for a company than just losing money on one job.