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Pebble dash advice and choosing a builder?

Hi, I have a 1930's semi-detached house with pebble dash render. I have some penetrating damp to the rear wall and outside there are some cracks to the pebble dash render that have been filled (not very well), before the wall was then painted white (not very well either) - thie cracks seem the likely cause. To rectify the cause one quote I have had is to re render the entire back wall of the house - there are some other cracks and a cemented-over flue and possible other areas of damp inside too, aesthetically, this would be nice to get it looking better anyway.

I would like some advice on the proper way to do this please. One builder recommended repairing where the cracks are and then re pebble-dashing the whole of the back of the house by putting more cement and pebble dash over the existing pebble dash. Does this sound a reasonable method, I'm not too sure! If not, how should it be done. Thanks for your help,
Seeking advice, October 2010
hi,usally you would just cut away the bottom 12" or so,or however high the damp is rising,but then depending on what cracks are showing on the wall it may need to be all re-rendered??,otherwise just the lower part inside and out ,and treated with a brush application for water proofing.
if re-rendering all the rear again,it may pay to take the old off first,and uni-bond it all,or waterproofing agent,then render.

garry, October 2010