Not a "legal" answer but a practical one.
BOY ARE YOU LUCKY that you found out that this guy is such a bad actor. Thank heavens and add a little something to the plate this Sunday for getting out without the loss of thousands of dollars to a (insert descriptor here) 'contractor."
Did you check this guy out at the Better Business Burreau? Bet you didn't, but if you had his reputation was less than stellar.
do this: Enroll with Angie's list ... not expensive. Search for contractors by reading reviews. They are usually pretty good. Make the call.
and once again ... be HAPPY that while you were 'screwed' it was not in the wallet.
All comments on this site are 'in the cloud' and do not form an attorney-client relationship of any kind. Just consider them ideas for discussion. J
From the facts that you have presented, it does not appear that you have a legally enforceable contract. Even if you had, they do not seem to be perofrming their end of the agreement. You should find another contractor.
This response is for general education purposes only and does not constitute legal advice or create the establishment of an attorney-client relationship.