@Yashar Fred most of the items a housing authority identifies as deficient should be remediated anyway.  

The wholesaler can then try to obtain any remedy provided for in the contract, usually enforcing specific performance.  

We categorize the problems into two groups:Deal Killers (or Deep Discounts): These include complete system failures, such as needing a new well or septic system, which significantly impact the bottom line.Deal Modifiers (or Small Repairs): These are minor repairs like hydrojetting the drain field, installing a new riser, repairing baffles, or replacing pumps/tanks, which can leverage a lower offer.Step 3: Making the Final OfferWe make our final offer only after a full system evaluation with remedies.

Brownfield sites sometimes require soil remediation or removal of previous buried construction.

It’s not a performance based model unless you negotiate a bespoke contract, or have a larger portfolio. 

Can this be remedied?

Also, there's no evidence that the issue was properly permitted/remediated so I will have to do more work to get comfortable.

To my understanding too, you can rent your property out while you wait for the inspection and results, and if you miss some items on the inspection they're pretty easy to work with to get it remediated (In my inspection I was missing a smoke detector in the basement and they let me send photos when it was installed).

When I worked for a local developer to me, we had this HUGE risk management spreadsheet we had to go through outlining every known risk on the project, who was in charge of it and what we were doing to remediate it.

Unfortunately you are stuck paying the subcontractor and your only remedy is to go after the GC.