We are a general contractor working on a residential project. We just fired a subcontractor for failure to perform service to our agreed upon quality standard. The issues are well documented and have been continuous throughout the project. We paid them for all work done so far, but reduced the 3rd draw payment by the value of the labor and materials to repair some of their many mistakes, and docked them the field supervisor fees for the third draw of the contract as they had not actually supervised the field, resulting in many issues. The errors were significant and expensive. They have not signed a lien waiver. We realized walking away that we should have had them sign one before we paid them. We have never had to fire a sub before. We have an arbitration agreement in the contract.