Well, it definitely is. Now you’ve probably got to wait for a lawsuit to settle and then the work to be redone. Even in the absolute best case, this puts the project behind by months, and that’s if they don’t contest it.
You clearly have never been through a lawsuit. If they choose to fight it, it is a few years, not a few months.
Also, a lot of people who build a house do not live in them for a very long time. In fact, there is no data to show they live with them for longer than people who buy existing homes.
I am certain that if you went through this, you would find it to be a very large problem.