Legal Question in Construction Law in California

I am a CA & NV contractor. My partner worked for a GC also which had a client in Lake Tahoe who's second home burned down. We were asked by the homeowner to do the foundation on a time & material basis, oral contract which I now believe is a violation in the CSLB eyes because it is over $500. My partner gave her an idea of 35k for the foundation but all the spreadsheets etc clearly state that was an estimate. The bill came to a little over 46k because we preformed a lot of extra work all detailed in the T&M bill. The homeowner doesn't dispute we preformed the work but believes that the price shouldn't be over 35k. The job was finished 10/24/13. My partner reduced the invoice to 39k if she would pay by the 12/31/13, we wanted to pay our subs. She never followed through. I have filed a lien on the property. What are my options now? I told her that the more time this takes to resolve is money that I shouldn't absorb because of her wanting us to do her job for cost. I will admit that it is personal now on my end. She was our best friend on the job and is now acting in bad faith in my opinion. Twelve years of owning my own business and have never had to do this. I think I am due the whole invoice plus interest and fee's. Can anyone help me?

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