I Tried To Tell You That The Retaining Wall
Was Going To Fail
Constructing a retaining wall will help in holding back soil from areas around buildings. Without these walls, the soil can erode and push up against the building and wood rot damage to the building over time. Of course the slope would also encourage the flow of water toward the building which can cause it's own problems.
If you are constructing or replacing a retaining wall it is important to hire someone who can do the job correctly. A general contractor with experience in building retaining walls will no that it is important to set the posts deep enough to withstand the force of the soil over time. Drainage rock is can help but it needs to be put in to help with moving the water away, not just filled in the back side of the wall.
This wall was installed by the lowest bidder. I had a chance to see the work being done and tried to warn that the wall was not going to last very long if it is built the way it was being done. Work continued until completion. This photo is taken less the a year from completion, it is already moving as a result of poor construction.
There is nothing wrong with looking for a good price in your home improvement projects, I would do the same thing. Let's not forget that finding someone who can do the job right needs to be high on the list of priorities. In Sacramento consider Tromler Construction for the construction or replacement of your retaining wall.