The owner is pressuring us to complete this transaction. We've already paid 1/3 of the amount owed...Are we obliged to let this company repair/redo the work they did wrong in the first place?
The Owner? You are the Owner. Do you mean the Contractor? Are you obliged...did you sign a contract? If so, what does it say? Does it require the contractor to 'do a good job'? Does it provide for his 'first right' to remedy defects?
If you want 'legal' advice a DIY internet forum isn't the place to get it. Do yourself a favor now and don't pile a new problem onto your existing problem. Pose your questions to a KNOWLEDGABLE attorney.