So where do you really start here? space violation in front of the panel?, the fact that you now can't put the front of the panel on?, open splices, strapping? Are you sure this even works? (using the term loosely)
Unreal! They seriously pay people to do this kind of rubbish?. I have the benefit of being in a rather smaller city, if you tried that here as a electrician you would be laughed out of town after the fellas around town heard of it.
#161107 - 03/30/0707:22 AMRe: Water Heater -then -Pump in Front of Panel
For summer homes, people often winterize them by draining the plumbing including the water heater and pouring some antifreeze in the traps. That way, there is no water to freeze and burst the pipes in the winter months if the place is unheated. The warning reminds people to refill the heater tank before energizing it to keep the elements from burning out.
#161121 - 03/30/0703:31 PMRe: Water Heater -then -Pump in Front of Panel
I'd lay odds the owner did this job by searching through a box of old fittings and picking up anything that had vaguely the right ends to get to the next joint. There's even a multi-point manifold in there. That yellow hose looks like garden hose pipe. There's even an automatic air-bleed pot!
Why do rational intelligent people create these death traps in their own homes. I can't see even the local handyman expecting to get paid for this mess, so it has to be a DYI job.