Hi Dan,
There is no provision in law for the payment of compensation unless it is a claim for damages. In order to get this you would have to show damage to property, economic loss or personal injury.
Have a look at this:
Damages payable to consumers who are victims of dodgy builders | Consumer Information
Again there is no provision in law to say that you shouldn't be inconvenienced when you are refunded. However, you shouldn't have to pay any costs.
Having said this it is pretty poor customer service and if it were me I would let you hang onto the sofa for a few weeks.
I know this is not what you want to hear.
Tony