Many RE text books have exploded views of a house, showing the parts from the vapor barrier at a foundation up to the overlap of shingles, the ridge cap at the top of a roof.

He made me tear off every bit of my new coquina just so he could see that i had used vapor barrier over the new wood and that it was really only 2 boards replaced.

I can't tell you how many I've had to repair dry rot in because there was no vapor barrier.

If so, the ridge may very well be the culprit... either because it is sealed so tightly (not uncommon with SIPS panels) that all the vapor collects at the ridge area with no place to go.  

Now three weeks later, she texted me regarding her squeaky fan above her bed.  

If you don't mind spending a few dollars, you can get your/a lawyer to send her a "cease and desist" letter regarding her behavior, which may or may not be effective but at least lets her know you mean business and aren't going to put up with her BS anymore. 

We even installed additional insulation and a vapor barrier to prevent further moisture damage. 

Alternatively he suggested adding dirt to level out the space and then installing vapor barrier for $800.Anybody had experience with this before?  

Initially, I was concerned but seeing that your PM managed to get a co-signer on this contract speaks well for him / her. Being

From there we led the water out of the crawler, then we put a nice thick vapor barrier throughout the entire crawler and sealed it.