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3 month remodeling project delay and incompletion

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Junior Member
Project includes kitchen renovation, room painting, closets organizers setup, sump pump installation.
Started November 2, 2005 and has to be completed March 17, 2006
The project is still incomplete.
Contructor supply kitchen cabinets and was responsible for cabinet damage, inconsistence and etc. Contractor hires a kitchen designer to design and supply kitchen cabinets. Designer made major mistakes and supply broken cabinets, and late in time.
Contractor use this situation as an excuse and terminate renovation and left 3 adults and 2 years old baby without a kitchen.
Designer supply replacements of most of broken cabinets in April 3, 2006 with exception of 3 draws.
Contractor continues not to finish the project and force owner to pay upfront.
This time Designer supply all expected materials (last pies delivered to contractor in June, 2006), but contractor still did not finish the project.
I am the home owner and have 3 documents signed by contractor:
1. Contract with content of what need to be done and dated 11/02/2005 and project complete date 12/02/2005
2. Notes from contractor stated of his responcibilities for the kitchen cabinets delivery and their condition such as damage, inconsistence and etc.
3. Note from contractor stated that project completion date is March 17, 2006, contractor require more days to complete the project and each delay day after March 17, 2006 cost to contractor $150.00 and this amount of money will be deducted from the balance.
Today is June 9 and project still incomlete.

Owner keeps $2000.00 (less than 5%) of the project cost till project completion.
But project is till not complete and contractor applies pressure on the owner to not complete the project for customer satisfaction, but request the balance from the owner. Contractor signed a documnet and was agree to pay $150.00 per each project delay day. This amount of money should be subtructed from the balance. Due to 3 month delay, I do not keep any money at all. Contructor try do not complete the project, but apply pressure to get balance.
What he can do to me? I am thinking to hire other contractor to finish the job, but do not want pay twice for the same work. What I should do now? I am living in Massachusetts and need to be educated what contractor can do to me?
Can I save the balance to hire the other person to complete the job? can contractor make a lien on my property?
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