The T connection is up high, so I wouldn't be concerned w/ spillage @ the water heater's draft hood. It's questionable as to whether a 12" rise is required before a change in direction above a water heater- some manufacturer's require the rise, while others don't seem to do so. The vent needs to be secured to the draft hood, and the hood should be secured to the water heater. It would be nice to see some additional support for the vent-- did it feel secure? So basically, it's a crappy looking installation, but I bet it is functional...