My parents have pretty much the exact same problem btw, as Im sure many families in Calgary do these days. Not much flooding, but enough to really be a pain in the arse.
All youd need to do is cut out the bottom portions of your drywall, have them replaced, and repainted. There's no way in hell Id pay 3 grand for that, especially when you could pretty much do the job yourself in one weekend....my dad and I built out our entire basement one summer, and putting up drywall was by far the easiest part of the job.
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