This is how the basement looked when we left for California last week. They had started taking off the exterior coating and were removing whatever built-ins were down there. The concrete walls were very sandy and apparently the prior owner had caused further damage by digging out channels for pipes and such. Our contractor pulled those and repaired the foundation walls with hydraulic cement.
As I understand the job, once the coating was removed, they brushed on a plastic bonding agent that penetrated the cement and helps prevent further deterioration. Unfortunately, I didn't get to see this part of the process because we were in California. All of the interior basement walls had been recoated with a smooth finish by the time we returned to Oregon.
It looks like they washed down the floor today in preparation for painting in a couple of weeks. They also started on the pest damage repair on the front portion of the basement.
I've got a couple of estimates scheduled for tomorrow to get the masonry on the front of the house repaired. That's our next project.