Sanjiv, when you go to closing, you should be going to an attorney for
closing. Let he attorney know that you agree to close but that you
want a legally binding document that states that the contractor will
remedy the water situation in your crawl space within a certain period
of time.

I've thought about your problem some more, there is a possibility that
when the plumber was installing pipes and checking things out that
there was a leak in the crawl space until they fixed it. I had that
happen in my crawl space. It takes a long time for the water to go
away. If the plastic was already on the floor of the crawl space, and
a water leak occurred, the water would run to the lowest spot. Does
the plastick go up the side wall such that the water won't drain
underneath into the ground very fast?

Your best bet is to also dig the hole yourself as I stated above. If
you dig right outside the house where the water is on the inside and
you don't hit water for 2 feet and the soil is not completely
saturated, then I'll bet it was a plumbing leak that caused the
water.

If your crawl space walls are cinder block, you have cinder block
sitting on a concrete footer that is continuous around the perimeter
of the house. This means that from the surface of the ground down at
least 2 feet, water cannot get out of the crawl space by going
sideways because the cinder block and the concrete footer stop it from
happening.

Good luck.