In this area, the delta/ high leg set-up is almost unknown; even most sparkies have never seen one. I even got to fix a mess that was set up just as you described.
There really is no "code" as to wire markings and voltages- with the one exception that you note- the high leg ought to be orange. I don't know how old this code requirement is- I certainly have never seen it done! In the delta I recently encountered, the wires were marked blabk, red, blue, with blue on the outside, and the high leg as well.
I can't understand his claim that the "meter is bad" or that he "put in a 100 amp meter, and needs a 200 amp one". As far as I know, the usual utility meter is easily capable of handling over 300 amps. Nor do I think one would be damaged by connecting the high leg to the wrong lug.
And he wants how much to replace the wires? Why?
From your post, this guy seems to have minimal competence- he got in over his head- and questionable ethics. I wouldn't let him in your shop again. Period. Get someone else out there, and get their opinion.
As for the damaged stuff- he breaks it, he buys it. Sure, things happen- that's why we have 'profit margins.' (I am assuming you hired a real contractor, and not some "aw shucks" type handyman).
I have found the 'high leg' in every position possible. This is why one of the first things I do is check my voltage from line to ground. I have seen many guys check line-to-line, and that method will not identify a high leg. Incidentally, the 'high leg' voltage was probably a lot closer to 208 than 240 (just a detail).
A more serious problem should appear in the 'fine print' on the lable of the panel. Odds are, the panel is not listed to be an "appliance panel" for a delta service, and will specifically say so.
This is an attempt by the panel maker to have the electrician set up an additional panel for 120 v circuits. (An 'appliance panel' is one with line-to-neutral circuits). By having all 120 circuits go to a panel that does not have a 'high leg' in it, the fried stuff is much likely to occur.
If you have an inspector, ask him. Who ever 'certified' this guy as an electrician also needs to hear your story. He sounds just a little too marginal.
