Construction company halts work despite overpayment

By now, this reads like a modern version of Michael Kohlhaas.

Maybe an example from practice.

An acquaintance of mine is currently in a similar situation. He purchased a plot of land and started building with a general contractor. The house is currently about 65% finished (I don’t want to be too precise here). In this case, it started with the general contractor working less and less on the construction site as well as on neighboring sites, and the end of the story was the filing for insolvency. All payments were made according to plan (so a lot of money was "burned" for nothing).

It was then considered which approach would be better (1. legal dispute or rather filing a claim in the insolvency table etc. or 2. commissioning a willing architect who feels capable of completing the project through individual contracts). They decided on option 2. Of course, it is clear that the financial loss and the additional financial expense are not insignificant, but in the end my acquaintance does not regret the decision. They can move in now in September and hopefully soon forget the very unfortunate backstory of their house.

It keeps getting better.
Builders and thus contracting parties = children.
But you are the mother who has been granted power of attorney and (co)paid?
Why are you taking over now? Were you asked or do you consider it your right because you (co)paid?

How to finish a house was written by Muc. Very good.
Your motive so far seems to be to want to leave scorched earth behind. This situation is gaining a whole new perspective for me, considering the victims are your children, you are highly emotional at the same time, but now you have power of attorney. Oh dear.

If the children are AG, what are you (besides a financier)? And who is now the client's lawyer?

It does not read here as if you are just sniffing around out of interest to see what opinion a forum has. It reads here as if you are the focal point, i.e. the affected/damaged party (excluding financier, because financiers have no rights to the AN).

I had already written on Sunday: The builders of the semi-detached house are, on the one hand, my daughter with her family (currently on parental leave) and, on the other hand, my son with his girlfriend. We have financed what has been built so far entirely from our own funds (mostly, of course, the long-term savings of my husband and me), the loan has not even been touched yet. Therefore, we are currently paying quite a lot of commitment interest. And €130,000 is by no means a small amount that can be easily refinanced.

I foolishly recommended this construction company to my children and therefore feel responsible. Thanks for the turning point as well as the follow-up sniffing.
I'm slowly fed up. I can only wish everyone not to end up with such a great [BU] and find themselves in such a lousy situation.

What is your goal here? What can we do for you?