The money involved is substantial. The contractor is inexperienced. The owner is paying for the contractors education.
Was lath installed?
There is only one way to make this right. I wonder what the owner will think when the lath starts coming off. At the start I said that it was my fault that it went bad. "Well here's the thing about that" said Tommy, the oldest Henderson boy.
I could have met the crew. I did that once for an elderly lady. She took out the permit and hired a crew from some Asian country. I can usually pick out the country but these guys were ....well maybe Cambodian. She was from Indonesia. She asked me to show the crew how to install lath. I told her what tools I need and met the crew on an afternoon. She had a chair in the shade of a tree with a pitcher of lemonade. The lath turned out better than most.
They did a lousy job of stapling but since it is inside out they will get a chance to do a better job.
The installation instructions are on the product and they got it wrong.
During a previous inspection I explained roof to wall transition complete with a drawing of the 1"x4", flashing and counter flashing. That didn't work. The worker asked me what was wrong with this. I told him to ask the contractor that he works for.
It is a two story addition and there is plenty of stucco. The contractor asked me if staples can be used for the lath. I said yes as long as the wire is self-furring. He asked what should be used if the wire is not self-furring and I said to use furring nails. It went south from there.
By the time a job gets to the lath stage, owners have had plenty of interaction with the contractor. This owner was pleased to learn that it was done wrong.