ABC Construction Co$.$ was hired by a homeowner to build an extension to their house. During construction, some of ABC's workers trespassed on the neighbour$$s property to access the back of the house more easily, damaging some of the neighbour$$s landscaping in the process. The homeowner had also asked ABC to build a swimming pool as part of the extension, but ABC's structural engineer made an error in the pool design, resulting in the pool collapsing and flooding the neighbour$$s basement. The homeowner is upset with the delays and damage, and the neighbour is threatening to sue for the trespass and property damage.

Discuss with reference to relevant principles of contract administration, construction law, negligence and nuisance.

$($i$)$

What potential liabilities and claims could arise in this scenario?

$($ii$)$

What steps should the homeowner and ABC Construction take to mitigate risks and resolve issues?

Provide a clear explanation with IRAC Method relating to case laws and statutes