Builder recovery · HBCF support · subdivision
After the original builder entered liquidation, ARK Houses assessed, rectified and completed this two-storey Cameron Park duplex while developing separate records for the Incomplete Works and Defects HBCF claim streams.
Project overview
ARK Houses took over the two-storey build after lock-up, with most internal linings installed but approximately 35–40% of the original construction scope still to complete. The starting point was a documented site baseline and review of the contract, approved variations, payments, drawings and approvals.
As the work opened up, the project expanded beyond finishing the visible incomplete items. Concealed defects were investigated and rectified alongside the completion programme, with the two claim streams kept separate in the evidence and cost records. The finished project delivered two complete homes and a registered subdivision into two lots.
Scope delivered
From takeover to completion
Choose a stage to see how the existing condition was recorded, the remaining scope and defects were established, and the duplex was rectified and completed.
01 / Takeover condition
The original builder had entered liquidation with the duplex at an advanced but incomplete stage. The site condition, documents and remaining work were recorded before the completion scope was finalised.
02 / Incomplete external work
Alfresco roof framing and associated external work still had to be coordinated with weatherproofing, drainage and the finished site levels.
03 / Facade and envelope
Openings, cladding details and exterior finishes formed part of the completion review alongside the condition of work already installed.
04 / Incomplete interiors
Kitchens, cabinetry, services, stairs, flooring, doors and final finishes still had to be sequenced across both homes.
05 / Wet areas at takeover
The bathrooms were unfinished. Opening-up, testing and specialist review were then used to distinguish incomplete work from defective work already installed.
06 / Investigation and opening-up
Targeted opening-up, testing, photographs and specialist findings created location-based records of what was found and why rectification was required.
07 / Groundworks
Levels, formwork and access were coordinated with retaining structures, drainage, driveways and the final presentation of both dwellings.
08 / Retaining and concrete
Retaining, concrete and drainage work was sequenced to support finished levels, safe access and durable external areas.
09 / Wet-area rectification
Defective waterproofing in the upstairs bathrooms was opened, rectified, checked and then reinstated with tiles and fixtures.
10 / Drainage and services
External hydraulic work and drainage were installed, reviewed and recorded while access remained available and before backfilling.
11 / Interior reinstatement
Once concealed items had been reviewed, internal linings, stairs, doors, flooring and finishes could be reinstated and completed.
12 / Kitchen fitout
Cabinetry, benchtops, appliances, lighting and final services were installed and coordinated across both homes.
13 / Bathroom fitout
Tiles, screens, vanities, tapware and fixtures completed the bathrooms after the underlying work had been assessed and corrected.
14 / External completion
Alfresco areas, retaining, access, fencing and landscaping brought the whole site to a complete and usable standard.
15 / Completed duplex
The build was completed and the subdivision registered, creating two separate lots with individual entries, driveways and private outdoor areas.
Stage 01 of 15
Takeover conditionBehind the finishes
The Dilapidation Report and document review established the takeover baseline and incomplete-work position. Later opening-up, testing and specialist findings established concealed defects and the rectification each item required.
The investigation identified issues involving upper-floor joists, structural bracing and hold-downs, fire separation and acoustic insulation.
Findings included defective bathroom waterproofing, roof insulation, wall wrap, cladding and other weatherproofing interfaces.
Electrical and plumbing rough-ins, drainage, termite protection and water entry at the garage slab also required assessment or rectification.
Opening-up records, photographs, flood and moisture testing, camera inspections and specialist findings were retained before rectified work was closed.
A list of visible problems was not treated as the defect scope. Each item had to be connected to its location, extent, rectification method and cost.
HBCF claim outcomes
The unfinished work and original-builder defects progressed in parallel during construction, but they were investigated, measured, costed and documented as separate claim components.
Claim component 01
Full available payment receivedThe client did not have a clear roadmap for the documents and evidence required. ARK Houses assembled and cross-checked the records so the remaining contractual position and the cost to complete could be understood together.
Current NSW rule: SIRA's minimum-cover settings require non-completion cover of 20% of the contract price for partially completed work. Under the current icare HBCF policy, non-completion loss or damage is capped at 20% of the contract price, including agreed variations.
This 20% rule applies generally to insured partially completed work; actual cover and payment depend on the policy terms and claim circumstances. See the current SIRA cover settings, icare policy wording (PDF) and claim guidance.
For this project, the accepted non-completion calculation reached the policy's 20% sub-limit, calculated on the contract price including approved variations. The cost of the Dilapidation Report was also accepted.
Claim component 02
Claim paid in fullA defects claim required more than a schedule of visible problems. The record had to establish the defect, its extent, the necessary rectification method and the associated cost.
Concealed findings extended across structure, waterproofing, fire and acoustic separation, bracing, insulation, electrical and plumbing rough-ins, wall wrap and weatherproofing.
Had these defects remained undiscovered, deterioration and damage could have continued. Diagnosing and rectifying them after finishes were installed would also have required more opening-up and rebuilding, making the work far more disruptive and expensive.
Timing also mattered. In NSW, statutory-warranty proceedings generally must be commenced within six years for major defects and two years for other defects, measured from completion. HBCF cover has separate eligibility, notification and claim requirements, so late discovery could have put the client’s recovery at risk.
The documented defect rectification amount was accepted and the Defects claim was paid in full.
The claim decisions and payments described above were made by icare HBCF and its claims manager. Outcomes vary by policy and circumstances; this case study is general information, not legal, financial or insurance advice.
Floor plan & subdivision layout
The lower and upper floor plans show how the two homes are organised across both levels. The registered subdivision places each dwelling on its own lot after construction was completed.
