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What you do next is you send your neighbour a letter telling your neighbour that if he does not repair the driveway by a deadline that you set or at least commit to doing so if it's not possible to do it now because of the weather, then you will have no choice but to sue him.
You can sue your neighbour in small claims court and self represent. You do not have to sue the contractor. The neighbour can sue the contractor but that is not up to you because it is the neighbour who hired the contractor and he is liable to you.