Regrow, whilst I, like westminster, would want the whole thing redone, for the sake of reasonableness it may not be worth your while. Can you live with it? It may be in your best interests to work around it. Will the 90mm difference affect other things such as windows?
Whilst you are right and the builder is wrong, sometimes it is better to move on. Sometimes it is not worth the grief. He is in repudiation of the contract and has abandoned the works. But it is a case of 'do you want to be right or happy?'
How is the relationship between you and the builder? Can you continue to work together? Think in terms of big picture and your health, because once the relationship with the builder deteriorates to a point where you have to engage a lawyer, believe me it is stressful and expensive. I would now try to work around the issue, but put the builder on notice that you will be watching it closely. Do NOT allow him to charge you for any variations because of the 90 mm difference or other mistakes of his making. I would get that in writing. Get an assurance from him that his mistakes will not adversely affect you financially and that you will not wear any future costs because of those mistakes. Builders can think of all kinds of reasons to charge you more money.
You have done what you should do; that is:
1, communicated with the builder and attempted to resolve with issue with him;
2, had two building inspectors check the building works and tell you they are passable;
3, attempted to get it sorted with the building authority (who didn't care).
If it were me, I would suck it up and move on. If you want to take on the builder, wait for your house to be finished and do it then. That way at least you will have one less thing to worry about.
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