You have a number of options. If you think that the contractor can do the work and you want to give him a chance to make good, that is one thing. If you are done with him, then I would get estimates for having the work completed. You can either pay to have that done and sue the contractor or sue the contractor and then pay to have the work done, once you collect. The being able to collect is possibly going to be the tricky part, because the contractor neither sounds reliable or trustworthy. It is likely that you are not the only people he has done this to.
You can always go to the state licensing board, the Better Business Bureau and the attorney general's office and lodge complaints. This will help prevent him from doing this to someone else.
If you file a claim and the damages are for less than $5k, you can file a small claims action and avoid the expense of an attorney. If the damages are for more than that, then you would need to go to district court.
You may also want to file a police report with regard to the materials, but the contractor is not going to be able to pay any damages, if he is in jail.
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You should bring the contract, pictures, and very importaantly, estimates to finish the project, to an attorney right away. If the amount in controversy warrant it, I suggest that you pursue the matter in court if the contractor does not respond favorably to a letter from your attorney.
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