holding earnest money on a repair contigency

we had a $2000 R.O.C. on our home. we had it inspected they were not over $2000 per our estimate but was over $2000 on his. At issue is moisture under the home the permissible is 19% to code ours is 17% as per the home inspector the buyer chose. There was a "small" amount of water penetrating the foundation on the rear which we estimated at $1446.00 from a reputable company with many years exp. his including tearing 4' of deck off is $2870. ours said he can do it without the removal of the deck. We will pay for this repair yet he terminated the contract. can we keep his earnest money?