Pool Remodel: Tile Installed Incorrectly?

[tahoeblue]

I contracted a local pool remodel company to replaster my pool and install waterline tile. I did some research before I talked to contractors. From the research that I did I was able to determine that 1) mortar bed should be floated around perimeter of pool where waterline tile will be placed 2) waterproof thinset should be applied to mortar and then tile applied 3) thinset should be allowed to cure 24 hours before applying waterproof grout.

Should I expect a licensed contractor to adhere to the above standards?

My contractor used a blend of Mortar, Duracal Cement, and Multi-set 917 and applied large amounts up to 1 1/2 inches to the back of the tile and applied the tile to dry gunite. Refer to pictures. (Just noticed I can't upload photos. Will try later)

I told my contractor before I signed contract that they were to float mortar bed, allow mortar to cure, then apply waterproof thinset to tile.

As you can see from pictures this did not happen.

My contractor stated that "this is how we apply pool tile". As I have made a 50% deposit and I am unsure about having this contractor continue working on my pool I would like to ask for some advice from forum members.

What should my next step be?