Sounds like you are correct -- you have a big problem.
Just FYI, if it all goes to heck, you can probably recover for the pool's function by painting with epoxy -- costly, but won't break the bank.
Unfortunately, removing plaster and replacing IS expensive, and is probably what your contractor is DESPERATELY trying to avoid. If he's got 15 pools like this, there's a fair chance he's looking at bankruptcy.
So:
#1 - Take a FULL set of pictures. If you want some of the pool service guys here to look at them, send a few to poolforum@gmail.com
#2 - Write down a FULL diary of events, as accurately and completely as possible.
#3 - Take the pictures, the diary, and your contract to an attorney, explain, and find out what you need to do -- if anything to (a) preserve your rights and (b) try to get at the front of the line for repairs or reimbursement. I'm guessing that whoever is at the back of the line may be out of luck.
Regarding change of formula, my guess is that that COULD be the problem. Try to get the details on HOW it changed. There may be a manufacturer that can be sued. But talk to an attorney, and try to be as nice as possible. There's a really good chance that your contractor is scared and not sure what to do -- scaring him more probably won't help your situation.
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