I am looking for feedback on how to handle a web development team that has spent a year developing our site but has left us with an unusable, unfinished product and wasted a year of our time.
BACKGROUND
We hired a US based project manager who works with overseas talent. In February 2010 we signed an agreement which stated we would pay them 3 installments (of which we paid the first installment of several thousand dollars) at the beginning, middle, and end of the project.
The team has been communicative and cooperative but inadequate in their execution. They agreed to create a website and iPhone app for us but the website is incomplete and totally unusable. I don't mean it is finished in their eyes and I'm not happy with it. It is unfinished/incomplete.
The original completion date was May/June 2010. Promises made and promises broken over and over.
In November I finally hired a consultant through this site to help evaluate where we are. Just today the IT team allowed us to download the entire site for my consultant to evaluate. As I said at no point have they been rude or hard to deal with just haven't communicated honestly (or haven't followed through on their commitments). I kept trying to dialogue with them and they would admit they were slow and make new promises. Finally, I realized this was a useless tactic.