Egon:
When I looked at Andy's picture of the water logged yard. I thought to myself 'no one in the trades with an ounce of knowledge would put an in-ground system in that area'.
I see the inspector scenario played out around here on numerous occasions. There is a large amount of the good 'ole boy inspector/contractor crap around here as well as about any rural setting. That's one reason we got away from installing engineered fields. In more than one incident, the inspector had about as much knowledge of the item he was inspecting ie: electrical, plumbing or structure, as a toothpick. It all boils down to who is friends with whom, what lodge they belong too or family ties. The problem with incompetence is that the homeowner, in the end, bears the brunt of their inability to perform the inspection or for that matter the actual work, properly.
I know those are harsh words and I probably rilled more than one TBYNetter, but that's how in works in rural America.
To Andy, I'd get the opinion of a Sanitation Engineer, board certified and get it in writing. Secondly, I'd get a good mouth piece, one of those $250.00 per hour ones and let him lay down the law or should I say lay down the suit against the township, their inspectors as well as the general contractor for punitive as well as compensatory damages. At that point, after you have built the fire, I bet the township and the contractor will be pretty happy to resolve your problem.
I might add this:
Years ago, I lived in Ohio, where Andy resides. I got to see first hand, what poorly installed septic systems with undersized leach fields in heavy ground do. There was a 50's development across the road from my home. The lots weren't large enough to accommodate the leach fields and the water table was high. The fields worked marginally for a number of years but eventually became clogged and saturated. At that point, a number of homeowners had a raw sewage problem, especially in the spring. The solution was to install a residential sewage system for all the homes at the homeowners expense of course. The builder, inspectors and their cronies were long gone.