I am a little conflicted on what my response should be, my wife’s friend’s husband painted a room. After the job was done i had pointed out he forgot to plaster a 1 by 1 hole.  At first he told my wife it’s ok, meaning no money.  Then when he was in the middle of the job he told my wife plaster guys get paid for travel time. Now he is billing 8 hrs for the job which includes a 20 minute paint job in which he had to do 3 coats.  The only reason , by all accounts he is billing double the time if not more. When i called him to question he finished by saying whatever I’m comfortable giving is ok.  

A 1 foot by 1 foot hole? 

Don't hire him again.

Painting is not difficult, nor is drywall patching.  Do it yourself next time. 

As far as the "moral dilemma" goes, sounds like he's OK getting paid whatever.  So pay him what you think the job is worth.  Which doesn't sound like much.

It isn’t good to do business with “friends” or family.  

And most of these painters, handymen, contractors etc are dishonest.    To charge  8 hours for 20 minute job is stealing.    He should have supervised his workers to make sure they completed the job.  Where was he when the work was being done?  

You shouldn’t pay anymore.  The Job should have been done right the first time.  He should inspected his workers job.