Contractor not finishing work - addition to the house

[akhot12]

Jurisdiction

Massachusetts

Hired a contractor for the addition work on the house. Signed a contract, got a construction loan. Contractor pulled out mid-work, stopped showing up at the site, pulled out his work crew. Made numerous attempts to reach him, keeps rescheduling meetings, not answering calls, promising to get in touch and never does.
Finally, sent him a letter asking to respond in writing on his intentions to finish the work. Got a call back, then email where he promised to send plumber, another 2 weeks passed and he never did. Stopped answering calls again.
Starting to fill out arbitration forms at the MA.gov site in trying to recover a portion that was prepaid for the work that wasn't completed.

Arbitration forms will state that he has failed to deliver on contract promises and abandoned the work without my consent.

Do I inform the contractor that I will be doing the arbitration?
Do I tell him that he is fired for breach of contract?
What happens to the permit since it was pulled under contractor's name?
Can I hire someone else to finish the job while I am going through arbitration?
What happens to the construction loan?

Advice is greatly appreciated!

 

[army judge]

Hired a contractor for the addition work on the house. Signed a contract, got a construction loan. Contractor pulled out mid-work, stopped showing up at the site, pulled out his work crew. Made numerous attempts to reach him, keeps rescheduling meetings, not answering calls, promising to get in touch and never does.
Finally, sent him a letter asking to respond in writing on his intentions to finish the work. Got a call back, then email where he promised to send plumber, another 2 weeks passed and he never did. Stopped answering calls again.
Starting to fill out arbitration forms at the MA.gov site in trying to recover a portion that was prepaid for the work that wasn't completed.

Arbitration forms will state that he has failed to deliver on contract promises and abandoned the work without my consent.

Do I inform the contractor that I will be doing the arbitration?
Do I tell him that he is fired for breach of contract?
What happens to the permit since it was pulled under contractor's name?
Can I hire someone else to finish the job while I am going through arbitration?
What happens to the construction loan?

Advice is greatly appreciated!

You might want to discuss your issues with the local police.
Some of these cases involve FRAUD.

As far as taking any civil action, you might want to wait until you consult the police.

Otherwise, you don't have to mediate or arbitrate a contract breach, depending on the amount, you might just wish to sue.

Or, you can continue your trek with the state contractor's licensing agency in your state.