Update pg 3 - Had to fire contractor for home reno and need to recover costs:

We hired a contractor a while back to do some work on our house. His contract included a clause that he owes us 3% of the total cost of the contract for every 5 days that he hasn't finished by the completion date in the contract.

Apparently, he had grossly underbid some work and does not have enough money to buy the materials to finish the project. This led to him firing all of his subs and staff and trying to do a lot of the work himself, in which he was not qualified to do. This led to some shotty work that will need to be redone. When we found out him running out of money, he was already several weeks past the contract completion date, and we had paid in full because of the 3% late penalties. We terminated the contract with him because he cannot ensure us when he will complete everything. We got quotes from other contractors, and there is probably about $10-12K worth of work to be done, including materials.

Do I have a legitimate claim to make him pay for all of this? It get's really confusing because of the 3% late penalties. One advantage that we have to collecting money is that I paid for everything via credit card, so I can dispute charges if need be. Any advice would be much appreciated.

Update - I filed a credit card dispute for less than $10k in July. A few weeks ago my bank sent me a letter confirming that the dispute was resolved and they awarded me the full amount requested.