Re: 2 coats of exterior paint on every interior wall in new home
Whatever you do, DO NOT pay your contractor until this issue is resolved. The only leverage you have is with your checkbook!
Sounds like the paint was not allowed to dry enough between coats, then with multiple layers like that, it can't cure properly and is peeling off in sheets. The correction will be to either remove the layers of paint and fix the damage done to the walls in the process, or to install new drywall, neither of which the contractor is going to want to do.
Get everything that you are told will be done in writing, then watch that it actually happens accordingly. Pay for the work ONLY when you are satisfied with the results.
This is a very touchy situation for both sides, so please try to be reasonable with your contractor in finding a resolution, as long as he's being reasonable and fair with you. If not, then the only resolution could be litigation, an avenue I hate to even suggest.
I suffer from CDO ... Its like OCD, but in alphabetical order, LIKE IT SHOULD BE!!!