Excavation uncovers serious water problems, leading to a consultation with a geotech engineer. Key recommendations include adding six inches of stone for stability and elevating the house by six inches to avoid the water table. Foundation preparation focuses on compacting stone and proper footing installation. Daily water management involves groundwater pumping and sump pump installation, with waterproofing measures like capillary breaks to prevent water intrusion. Zola sump pumps are chosen for effective drainage.