Thanks for not lumping me in with the rest of them!

This is the #1 complaint I hear from customers. As matter of fact, I just finished completing a job that the last contractor vanished from. The moron just never came back. Even with money owed to him.
I'm not that up on the laws except for the basics. NJ law requires all contracts to have a WRITTEN ( not verbal) start and completion date. If those dates are to change a new contract has be written up. From what I see, I dont think you have much recourse witholding funds due to the fact that you only paid for what was already completed and the end of completion date is still some time away. Even then, the law allows some reasonable "leeway". There is a law called the NJ Prompt Payment Act. It states the payment requirements to contractors , both public and private.
Personally I would threaten them with a call to NJ Consumer Affairs. No reason to be a nice guy here. Its bull$hit that "contractors" pull crap like this. You need to be aggressive. Like somone else said they probably have other jobs going on beside yours. I never take on a project I cant handle, ability or timewise.
Yeah I'd be pissed about the pillow blocks. They are yours. You paid for them. I would ask for them back just out of principle.
Good luck, let me know if I can help you in anyway.