When a residential builder enters liquidation, the project can stop with little warning. The most useful first response is controlled and evidence-focused: confirm what has happened, protect the property, notify the relevant parties and preserve a reliable record of the work.
1. Confirm the formal position
Do not rely only on a phone call, social-media post or site rumour. Search the builder’s company name and ACN on the ASIC Published Notices website and retain any notice identifying the external administrator or liquidator. Ask for the liquidator’s written contact details and keep every notice you receive.
Administration, liquidation, deregistration and a builder simply stopping work are not identical events. The policy response depends on the facts and the applicable HBCF policy, so confirm the position with icare HBCF rather than making assumptions.
2. Secure the site without destroying evidence
Take reasonable steps to keep people out, prevent weather entry and deal with an immediate electrical, structural, fire or water hazard. Before anything is moved, repaired or removed, photograph the condition from wide, medium and close views. Record the date, location and reason for any emergency work.
Emergency protection is different from restarting construction. Uncontrolled work can make it harder to show what the first builder completed, what was defective and what loss existed when the project stopped.
3. Find and check the HBCF certificate
Locate the Certificate of Insurance issued for the property and compare the builder name, address and insured work with the building contract. The Service NSW HBC Check can be used to check the certificate information. If you cannot find the certificate, still contact icare and explain what records you have.
4. Notify icare in writing promptly
SIRA advises homeowners to notify icare in writing as soon as there is a problem with work not starting, not finishing or being defective. Notification should not wait until every defect has been investigated or every quotation has been obtained. Ask icare what form and supporting records it requires for your policy.
5. Freeze and organise the project record
- building contract, tender, specifications and inclusions;
- approved plans, engineering, approvals and certifier correspondence;
- variations, progress claims, invoices and payment evidence;
- emails, messages, meeting notes and notices;
- photographs and videos taken throughout the build;
- reports, inspection records, certificates and test results;
- the builder’s programme and any list of outstanding work.
Keep original files unchanged. Create a working copy and organise it by date and topic.
6. Obtain a construction condition record
A useful inspection does more than provide a percentage-complete estimate. It identifies the location and condition of incomplete work, apparent defective work, temporary protection, concealed-work risks, compliance documentation gaps and the sequence needed to finish the project.
Incomplete work and defective work should be recorded separately. Owner upgrades or changes should also be separated so they are not presented as loss caused by the first builder.
7. Prepare a scope before seeking a final price
A replacement builder needs a defined basis for pricing. The scope should link each item to a plan, room, elevation or photograph; identify assumptions; note investigation or opening-up allowances; and state which consultant, approval or certificate is required.
A single lump-sum quotation with no location schedule or methodology may be difficult for both the insurer and the replacement builder to assess.
8. Check the project pathway before a new contract
Confirm the claim and funding position, lender requirements, certifier appointment, approval status, consultant information, site possession and the new builder’s contract and HBCF obligations. The completion programme should start from the actual condition, not from the original builder’s outdated programme.
How ARK Houses can assist
ARK Houses can inspect and record the construction condition, prepare incomplete-work and defect schedules, mark up plans, obtain trade input, develop a costed completion scope, answer technical questions and, where suitable, contract to rectify and complete the project.
Official sources
This article is general construction information, not legal or insurance advice. Policy terms, time limits and official guidance can change. Confirm the current position with icare HBCF, SIRA and your advisers.