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Plaster their name all over the internet as being bad karma, write to the papers, the radio stations, complain to your local pollie, council.
Start taking them down. If they can hurt you, you can hurt their business big time.
If they haven't got a license to operate in the state they haven't got a leg to stand on. Build the house the way you want to and ignore their complaints, they are illegal anyway. If they litigate then hedge them around forever costing them a bomb and giving bad publicity then settle out of court for your money returned.
I would certainly be making a lot of very public noise about it.
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