Pure laziness, IMO.

Insulation, a vapor barrier, and sheetrock are required. This should permitted and inspected also. And he should be licensed and insured. Is any of that a reality?

Thx for the responses. Lot of hiccups with this project, we're learning remodeling generally not a seamless process. Just trying to figure out what's worth making a stink about.

The biggest thing to make a stink about is the licensing, insurance, and permitting. All else usually flows from the lack of that required first step. It's not too late to go down to the permit office, plead ignorance and have that happen. It is all going to hit the fan when you go to sell otherwise. Or, it might hit the fan now. If there is a nosy neighbor that turns you and you get fined and have to rip it all out.

Good point. The multiple people who referred us to this contractor did not pull permits on their job. The GC said it's up to us, they "do everything to code anyway" and told us they would take pictures at crucial steps in case we wanted to have an official inspection. Now I want one and it appears those pictures weren't taken.

Time to force the issue. Go talk to the inspection office first thing Monday.

I would like to see an actual code reference to what people think is wrong. Your foundation is only dampproofed, not waterproofed, or they would not be trying to patch cracks from the inside. Because it is below grade where any moisture will be coming into the building or trapped from going out by the ground, instead of going out through the walls as it does above grade, a vapor barrier and sealing off the inside of the wall only tends to trap more moisture and promote mold growth.

https://www.certainteed.com/resources/Use%20of%20Vapor%20Retarders.pdf

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The drywall MUST be patched. This is negligence.

By Code, as shown above, and assuming that is the governing Code in the OP's jurisdiction, the drywall should have been patched and primed.

Of course, using fg in basement walls, unless it's to the interior of foam boards or spray foam, is poor practice Code notwithstanding.

By what code? (Give me a section/article number) There is no requirement for drywall on that furred space in the IRC (unless it's to the interior of foam boards or spray foam or kraft faced fiberglass, which is as bad of an idea as a plastic vapor barrier). And no requirement for drywall behind cabinets. The fire blocking at the ceiling line should still be intact. At least, there is nothing in the pictures to suggest otherwise.

The real code solution to the problem here is to spend another $50k to dig all the way around thefoundation, down to the bottom of the footings, and do everything in this picture.

The point is that trying to get an inspector to force something here could prove futile at best, if not very costly. It will almost always results in the GC doing nothing more than what is the bare minimum to get out of there and get paid. It is better to have a discussion with the GC at this point.

Code and "requirements" aside, wouldn't it simply be a better practice just to repair the drywall before installing the cabinets? The GC had to damage the newly installed drywall to repair a leak. Why not repair it before moving on? Seems to me that the GC is already "doing nothing more than what is the bare minimum to get out of there and get paid."

Absolutely jelly, and it is best practice that there be something solid on the wall behind cabinets. Snd in this case as he cut/removed drywall to fix the plumbing he absolutely should have replaced/repaired it, code required or not. Just my .02.........

About 20 years ago, some friends of my parents had an unfinished basement that they were thinking about finishing. One concrete wall looked slightly darker than the others, and felt colder. Turns out that there was seasonal moisture coming from off the property underground. We did some experimenting on this wall for about 5 years until they moved. We built a 12' long wall in front of the concrete and insulated it with fiberglass insulation. We then covered it with clear plastic. The plastic showed that the moisture problem was seasonal, as it would fog up just like a bathroom mirror when the ground water was present. It was quite obvious that the plastic was trapping moisture. Of course, if the basement were to ever be finished on that side, it would be best to take care of the moisture problem from outside, but this was an opportunity to experiment for now. It turns out, that when we pulled the plastic up off the floor about 10", and down from the ceiling a couple inches, it would allow enough circulation to avoid condensation, which is what promotes mold growth.

The leak was not within the scope of the original contract. The contractor is doing extra here. These kinds of repairs are rarely 100%. It really needs to be fixed from outside with landscaping and drainage issues fixed. And, maybe a place left to be able to monitor the problem, for now. We are not there to see the issues first hand, but many/most foundation cracks are caused by excessive ground moisture in that area, usually coming off of the roof with inadequate water control. The bigger issue is that there is no clear "right way" to proceed at this point.

https://buildingscience.com/documents/digests/bsd-103-understanding-basements

Be careful what you wish for. Looks can be deceiving. Especially, if you think that covering up the real problem will make it go away instead of making it worse.

I have never mounted cabinets by screwing into drywall, and never will. You are always supposed to support them by screwing into the studs. As far as something solid on the wall behind the cabinets, go push on the middle of the back panel on a cabinet with drywall behind it, and then on one without, and tell me you have any significant difference. There is a reason that most cabinet manufacturers recess the back panel so that it has no contact with the drywall. But, of course, drywall behind cabinets is usually considered the best practice since that is the way it has always been done.

No permits? I don't know how strictly your town enforces permits. I would call and check. When you sell the home, it may raise some questions, if it is inspected, and it obvious new work - they may ask the city if permits were issued. You could be denied a certificate of occupancy, until it's inspected. Difficult to inspect plumbing / venting / electrical when it's all been covered up.