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From everything you're describing about this client, you may want to take a pass on dealing with them.
It may come to trying to squeeze blood out of a stone re budget and doing a quality job.
Without sounding rude, you should offer them your advice and offer to help them out if the entire system needs to be ripped out in a few years. Also let them know of any potential liability issues from an improperly built wall so close to the municipal easement (asssuming the sidewalk is public property).
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