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Why is a builder asking you to do the work if he wants to do it himself, something doesn’t add up?
Or maybe he has cash flow problems?
Can't quite work out why the 'building firm' would give you the job and then be annoyed he is getting no money for it. It's hardly your fault if he forgot to add his commission onto your costs.
Sounds as though a 'face to face' meeting is required to see exactly what the problem is.......and I'd get that in before Christmas so that you can start the New Year knowing exactly where you stand.
I wouldn't think you have any legal standing without a water tight contract.
Verbal contracts may get work, but rarely stand up when it’s goes pear shaped, but agree with Colin - you need a face to face ASAP to understand where you stand before the Xmas shutdown.