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@stevo_com
This client sounds like a nightmare.
If I were the client, I'd want it sorted. But if it were my house and your mate, so long as everything was resolved, I wouldn't even be looking for a discount, especially if it was a genuine mistake and was made good. Your mate is going to be out of pocket already for the time spent putting right. Maybe some small nominal amount off for the inconvenience (having someone back in the house after you'd expected work completed is a bit galling).
To not even give the opportunity to put it right is a total dick move. But unfortunately, given they've started in this direction, it is very unlikely they are going to back down. They sound like the kind of person who feels like everyone is out to get them and immediately escalates when things don't go their way. Like the kind of bulb who gets all shouty for being called out for driving like a bell whiff.
If your mate can afford the time and resource to give an ultimatum, then I don't think it would be unreasonable to offer either, putting right at no extra charge, or 10% off the outstanding bill (assuming of course the issues were cause and could be put right by your mate - this would need to be proven). Option C is then small claims.
I've had other trades in to fix previous trades' fuck ups at my own expense, mainly because (as has been mentioned upthread), I didn't want the previous trades back, even for free. It doesn't sound like that kind of thing is happening here.