I think that room looks like a perfect candidate for a PJ set up. The soffit on the left side will serve nicely as a hanger wall for your side speakers. And you'll even have some room behind the couch for the 7.1 set-up, should you choose to go that route.

Just remember that you'll need to feed the projector with both video and power, so getting your contractor to put in an outlet in the ceiling near the PJ is key.