Without seeing it one can never tell, and even pictures might not tell the whole story. But my initial guess would be that the adjacent areas and terrace all slope towards the house, not away from it. I would suggest that before you venture into any remedial work, you should await the next rainy day, and then go outside in the rain and watch where the local drainage is coming from, and where it's going. Once you know where the track of the drainage actually is, then you'll be in a better position to design the fix. I'm betting that you will, unfortunately, be looking at removing what has been done and replacing it such that it all slopes away from the house.

Good luck.

Thanks Treebeard, Indeed the whole landscape slopes toward us. We are at the base of a mountain and have a road coming downhill next to the house. The contractors checked it with a level and the slope is away from the house, but perhaps not enough. Also, there is no gutter system next too the house. Don't know what you or others think, but perhaps if we dug a gutter system next to the outside wall it would cause the runoff from the mountain to head down the road instead of into our house. Anyway, I guess it's what we'll try before haveing to break out the new (two and half years old) terrace. What a waste of money and time if it is necessary to do! Any ideas as to how to go about digging a permanent gutter?