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Is the contractor entitled to ask me to pay for the difference when rebuilding the pool under the new specifications?

CaliforniaConstruction ContractDefects

I am the homeowner. I hired a contractor (December 2019) to build a pool (finished April 2020). Just a few weeks after built the pool cracked. The pool was drained and patched but the crack re-appeared (May 2020). The pool was then drained again (July 5th 2020) for another patch (which was never done because the pool got demolished). After insisting to the contractor that the concrete was not strong enough we did some core strength tests which confirmed my suspicions. Then a soil test was performed by an engineer which recommended tearing down the pool and rebuilding it with extra concrete strength and a subdrain under the pool due to the type of expansive soil I live in. The concrete company filed a claim to their insurance but did not proceed because the insurance company said that this was a bad workmanship issue which should be covered by the warranty. Now, after 6 months since the pool was last drained, the contractor is asking me to pay for the difference between the original pool design and the one recommended by the soil engineer (about 1/3 of the original contract amount). We are currently with an open hole in the ground after the pool was demolished, we are ready to proceed but I find the extra cost being the blocker. If it was included in the original quote I would have been able to make a conscious decision and commit to it, but right now I feel that I don't have that many options. I have asked the contractor for a reduced extra cost but he insists that I should pay for all of the new extra costs. Also wondering, can I sue the contractor after re-building the pool for any damages? such as loss of use, emotional stress, my extra time dealing with the situation, money loss (I could rent the pool and get some income), others.

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