I only see two problems with the aforementioned solution to this problem. Not only is it PROHIBITED BY CODE in all likelihood it will make the problem worse rather than correct it. The Plumbing Codes dictate that whenever any pipe is run under or through a footer or footer wall the pipe MUST BE sleeved and there is to be no direct contact between any pipe and masonry materials. To create a sleeve we must first select a short section of pipe at least two nominal trade sizes larger than the desired pipe and long enough to extend through the wall with 2 to 3" extending out on either side. The sleeve pipe may be cast into the concrete, mortared in when the wall is laid or you may make a hole and install it after the wall is constructed. The sleeve may be sealed to the wall by means of pitch, tar, expansion foam or any other locally approved suitable means. Once the sleeve is in place the desired pipe is to be passed through the sleeve and the space between the outer wall of the desired pipe and the inner wall of the sleeve is to be filled with expansion foam. The purpose of the sleeve is twofold. 1. Pipe has a much greater coefficient of linear thermal expansion than does concrete, cement or other masonry materials. Whenever pipe is in direct contact with masonry materials as the pipe expands or contracts it rubs against the masonry material having the same end effect as repeatedly rubbing the pipe with an abrasive grinder. 2. If a metal pipe is in direct contact with any form of cement, mortar or other masonry materials the lime in the mortar reacts with the metal in the pipe and causes severe corrosion of the pipe wall. Not only will cement or even hydraulic cement not effect a water tight seal, digging on the outside of the wall will most likely make the problem even worse. No doubt, by now the soil on the exterior of your basement wall settled to a point were it has achieved maximum compaction. If you were to dig up that soil, attempt a repair from the outside, then backfill the hole, the soil immediately around the problem would be loose and would offer very little resistance to surface water soaking down to the pipe. No doubt it would be very difficult to install a sleeve at this point however you can do the next best thing. Working from the inside clean out as much dirt and debris as possible to enlarge the hole around the pipe, then using a can of expansion foam that has a flexible tube on the nozzle, insert the tube as deep in the hole as possible and fill the hole with as much foam as you can get in, then continue spraying the foam as you pull the tube out. The foam will adhere to both the masonry material and the pipe wall; yet still provide a flexible material that will compensate for the thermal expansion or contraction of the pipe.

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Having siding presumably means it is covering a wood framed structure. If you just had the house resided, that means you shoveled the dirt back against the house. Grade and decorative cover should always be below the top of your concrete foundation walls minimum of 4". BTW code specifically requires it to be 4" below brick and 6" below all else. The reasons are: 1. Water seeks level - it moves from high to low areas. If it encounters something blocking the path, it will take the easiest route, which may mean through your structure finding any and all gaps and cracks: - on top of grade, termed "sheetflow" - within and below grade "subsurface," not necessarily the water table, but water being absorbed from the surface and working its way down and sideways. 2. Soil holds moisture. The siding, sheathing, bottom plate, and bottom portion of wall studs can not breathe and will prematurely rot (if termites don't get them first). 3. Bugs and pests. Soil against wood framed walls acts as a direct transfer for them into all those nooks and crannies, eventually exploring the rest of your house.

You are right to send up the SOS. If you can get out of the deal, do it, and find someone who understands what you want and the way you want it done. Don't argue with him. Tell him the job is over and he is to leave. You might have to repeat, the job is over and leave.