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Bad thing is, you just can't get the lien removed. Good thing is, there is some sort of construction defect. Now, most General Liability policies to do cover construction defect, but, you should get his insurance information (which you might have to file a lawsuit) and file a claim on his insurance. Hopefully, he has something in place to cover the construction defect, or he is forced to repair it. I would be questioning the fact of who inspected the home. That is another avenue. If they inspected the home and passed it and it is leading like that, then there is the option of professional liability claim on the inspector.

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Q: How do you get a lien removed if you withheld final payment to your builder because during every rainstorm your living room ceiling and light fixtures leaked and the builder put a lien on your house?
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