Just planted this in the spring. Was doing okay until a week ago when I noticed one half of the shrub looks like it is drying up and dying.
Was watering 2x week until it became established. Now, I let mother nature take care of that. Should I go back to deep watering?
Could it be bugs or mites? I did see some spider webs on it.

Hi, welcome to NGA, @dveary

It can take up to a full year for trees to become fully established. I would say at this point, if it does not rain at least 1/2 to 1 inch a week right now, your tree would still need to be deep soaked weekly.

The webs are more than likely spider mites. Here is some info on what "bugs" Crape Myrtles and what to do for it.

http://homeguides.sfgate.com/i...

Depending on the variety, you may want to move your tree further away from your foundation. A tree with a 12 foot canopy needs at least 6ft on all sides in order to spread unobstructed.

It also helps when answering questions on plants and pests, to have a general location...ie North Texas, Milwaukee, Northumberland UK...or at least a state and USDA zone.

Please post what you find and how your Crape Myrtle is doing.

I do hope this is of use to you.

Update. I tried to continue deep watering, but that one main branch is dead. The weird thing is that on the bottom of that branch, there is a lot of new growth. Am I better off cutting that branch all the way down? Will it grow back? Will the tree look lopsided?
My landscaper is willing to re plant a new one for me at no charge

First, do you know which Crape Myrtle variety you have? That will determine how big and wide your tree will become. Look at these links for info on size. The spread is figured from the trunk in both directions. A 10 ft wide tree needs at least 5 ft of clearance on all sides.

http://aggie-horticulture.tamu...

http://www.usna.usda.gov/Photo...

In answer to your question, I personally, would go for the replacement. Without knowing exactly what went wrong, there is no way to know how to remedy the problem. A fresh start may well serve you best. Best of luck to you with the new tree.

Just replace it if he is willing and the new one will need watered often for a year or two, especially during hot summer. Don't know what zone you are in but mulch it over the winter.