Legal Question in Construction Law in California

Advise the contractor that you are aware that it is a violation of the Business and Professions Code for a contractor to collect payment for more than the actual value of labor and materials in place at the time of a bill or draw. Advise the contractor that you are aware that such a violation will subject them to license discipline by the Contractors State License Board, and may result in revocation of their license bond. Advise the contractor that if he does not account for all funds paid to date and provide proof of progress before any further draw requests, and provide progress substantiation with every further draw request, that you will file a complaint with the Contractors State License Board and make a demand on his license bond for reimbursement of over payments to date. If that doesn't work, you will need to hire a construction attorney familiar with terminating contracts for cause and how to either leverage that to get contractor compliance or to actually terminate the contract and retain a completion contractor.