Home Improvement Questions? Ask a Handyman for Answers
Your situation is one that needs a local structural engineer to come inspect your home and foundation. Using their report you will either gain peace of mind or you will know you need to take action to stop construction until the proper precautions are taken.
If the engineers report ( certified structural engineer) does show a problem with the work being performed you need to present a copy to the local inspector/s and ask for a "stop order" until it is established that the work will be done properly.
The engineers report should be enough to get everyones attention and could help avoid or help with any legal action you may need to take.
If your engineer does find a problem you also need to send a copy to your homeowners insurance.