Does a Newly Graded Lawn Need Time to Settle?

After grading and sodding, a large puddle near a former tree location indicates poor drainage, not normal settling. Two hours of watering is excessive; limit irrigation to 15 minutes and observe. If the puddle persists, dig a hole in that spot, fill it with large gravel or rubble, and line it with landscape fabric to create a soakaway. This will redirect water away from the surface. Proper grading should move water away from the house; if the contractor's work doesn't achieve that, the issue is likely inadequate grading or compaction, not sod establishment. Withhold payment until the drainage problem is resolved.