Colorado Custom Design/build

Recently purchased a home in Denver. During the inspection process, it was discovered that the foundation needed to be braced and reinforced due to force from over saturated ground water and soil. A structural engineer assessed the project and recommended ASC Construction to complete the work. ASC Construction provided a quote and estimate of time for the job, and the job was agreed upon. As part of the home sale, the previous owner negotiated a lease back to occupy the home through the end of May. It was agreed between the tenant and myself that work would begin on the repairs while the tenant was occupying the home, with the understanding that job would be completed in less than 4 days, with minimal disruption to the tenant and living areas (as the work was being performed in the basement/sub-area of the home - but accessed the living areas). 2 days after work began, while out of the country, I received a call from my Real Estate agent that the police had been called to the home, as the tenant was concerned for his personal safety due to the behavior and actions of Mr. R Charles Crowley. In conversation with my Real Estate agent it was shared that Mr. Crowley had brought his 2 dogs with him to the home (never agreed upon, or discussed before hand that this would be a possibility), and had left the site at or around 2pm in the afternoon, leaving the dogs in the backyard unattended, and roaming the yard. As the tenant of the home had his dog living with him (which was previously disclosed to us, and agreed upon), he was concerned for his dog's safety if he let it out in the yard. Nearly 7 hours later that same day, Mr. Crowley had not returned to collect his dogs, secure the work site, or notified me as the owner, or the tenant, of his where being. Due to this, the tenant contacted the local police department for advice on caring for the dogs. The police were dispatched to the home, along with animal control, and at that same time, Mr. Crowley returned to the home. Upon contacting the police, it was apparent that Mr. Crowley was intoxicated to the point that he was unable to operate a motor vehicle, care for his dogs, or secure the work site. He was arrested on suspicion of Driving While Intoxicated, his dogs were impounded by animal control, and he was taken to hospital for detoxification. After this incident, the tenant, understandably, was fearful for his personal safety, the safety of his dog, and the safety of the home. The tenant requested that Mr. Crowley be banned from the property until the end of the lease term, and that no work would take place. Understanding the concern, and feeling the same way if in that position, I agreed that no work would be done until the tenant moved out. Over the next 2+ weeks, Mr. Crowley made no attempt to contact me as the owner to explain the situation, offered no apology, and seemingly ignored the request to not access the job site, as it was shared with me he did in fact return to the site after being told not to earlier. After the tenant moved out, and nearly 3 weeks after the original start date of the project, Mr. Crowley sent me a text message suggesting he'd "like to get the job back on his schedule." As I was due to move in to the home later that week, the work needed to be completed in short order to ensure I would be able to move in my positions, and that the moving crew had unobstructed access to the home. I shared with Mr. Crowley the time frame in which we would be moving (4 days from then), and Mr. Crowley suggested that there would be 1 or 2 days of work to complete. However on the day of moving in, it was apparent that the work had not been completed, and the work site hadn't been cleaned or prepared for the moving company. It was only after repeated text messages and calls that Mr. Crowley returned over the course of 3 days to complete the job (2 days after moving in). Upon completion, Mr. Crowley and I agreed that payment would be made after an inspection from the structural engineer to confirm the work was done, and to the quality and standards established. After reviewing the completed job, the structural engineer assessed the project was done to his satisfaction and provided documentation to that effect. That same morning, he notified Mr. Crowley and me of his conclusion. Mr. Crowley then contacted me to request payment per the agreement. As I was unable to meet Mr. Crowley at that exact moment, I suggested that I would call him that same evening to discuss details (who to make the check payable to; how much was the final cost; etc.). At 6:45pm that night, having returned from work 15 minutes earlier, I received a text message from Mr. Crowley demanding payment immediately, or that "it will be turned over to the attorneys and it will cost (me) triple". I phoned Mr. Crowley as soon as I read the text, and was shocked at his threatening and hostile tone. Although the project was, eventually, completed per the agreement,