Approximately 30,000-35,000 new homes are built in Ontario (pop. 14.57m) every year. The mandatory government warranty programme is two years for water penetration. As a small builder, I overdid it, as just one callback could kill you.

I had a friend who bought a lifetime membership in a Vic Tanny Health Club. It folded the next year.

@GN Builders L.L.C and @worthy, thanks for the info. You make a good point about the companies going out of business. That would be my luck. I'm just really irritated that I was told I would get a decent warranty. Once I add everything up to get that warranty and all the extras my builder forgot to add-in to the price of block, I probably could have brought in concrete guys from out of state just as cheap and had what I wanted! Live and learn!

Whether applied to a block or poured foundation, the "typical" waterproofing is a plastic membrane with weeping tiles covered by washed or river gravel. More severe conditions will require additional waterproofing methods.

Delta MS membrane

I use this type of membrane on my foundations, even in areas with the high water table and excessive hydrostatic pressure there is not a single sign of moisture on the foundation wall, even during storm Sandy there weren't any issues. The material I use and install is coming out of Canada.

@worthy, they did something similar on our house. The used delta drain on the exterior walls, and a dimpled product on the interior walls. I'm not sure how I'm supposed to finish my basement with the interior product there, but that is a problem for a later time. For now, I'm going to find a way to hang fabric over it, because those dimples really screw with your vision!

One waterproofs from the outside, not the inside on a new home. If there is a concern about a great amount of water, the builder can add further barriers to the outside and under the slab, as per the Delta illustration below. (The footing barrier, which stops rising damp, has been part of the Ontario Building Code for more than 10 years already.)

As for finishing the basement walls, any space between insulation and the wall will short-circuit the effectiveness of the insulation. Unless there is an interior footing drain to collect any water behind the interior membrane, all the plastic will do is trap moisture for mould growth between the plastic and the foundation wall. It looks like the builder intends to pour over the plastic that extends onto the bottom of the excavation. I don't see the logic behind this arrangement.

It may just be a scam to get money from you. They send to 1000s of homes hoping some will pay without questioning. I am just taking a guess since I agree it sounds ridiculous. Who sent them info that you used their product? Was it the product you used?

@lafdr, no one sent anyone the information. This letter came from the subcontractor that installed the product! Had it come from some random company, I’d just toss it without another thought. The fact that it came from a “professional“ that I paid to do the install is what mad me mad.

The interior sheeting doesn't look dimpled in the picture; it looks just like plastic sheeting.

Looking again at your exterior pic, there's no visible footer drain covered by gravel as per the Delta schematic. As well, what a peculiar way to do things: spray-on the asphalt cutback a bit at a time, then cover with the Delta materials. Am I missing something?