I Think My Builder Is In Trouble – What Do I Do?

When your builder goes quiet, your gut may already be telling you something’s wrong. If you’re worried they’re heading for liquidation before your home is finished, it’s time to act—fast. Every day you wait could cost you time, money, and options. Here’s what you need to know, step by step.

 

1. Move Fast: Time Is Money

If your builder is in financial trouble, you’re not the only one affected. Other homeowners will be racing to lodge their claims too, and the QBE claims processors can get overwhelmed quickly. Getting organised early gives you the best shot at a faster resolution and less stress down the track.

 

2. Confirm the Situation

Start by checking the ASIC website to confirm whether your builder has officially entered liquidation. If they’re still registered but unresponsive, your claim may not yet be “triggered”—but there are other actions you can take (more on this below).

 

3. Secure All Your Project Documents

Gather every piece of paperwork related to your build:

• Your signed Lump Sum Building Contract

• All invoices, receipts, and payment records

• Communication records with your builder

• Variations or changes to the contract

• Progress claims or photos of construction

Store these digitally and in hard copy, just in case. You’ll need them throughout the claims process.

 

4. Contact QBE ASAP

If your Home Indemnity Insurance was issued by QBE (as is standard in WA), contact them right away:

• 📞 QBE Contact Page or call 1300 790 723

• Request a Claim Form and ask them to confirm next steps.

 

5. Completing the Claim Form

The form is designed to determine if you have a valid claim. If your builder has entered liquidation and you had a Lump Sum Contract with them, chances are high your claim will be accepted.

The form will ask for:

• The full contract value (including variations)

• The amount paid to date

• Site photos of the incomplete works

• Description of the construction stage at the time work stopped

Return the completed form to QBE along with all requested documents and photos.

 

6. What If the Claim Hasn’t Been Triggered Yet?

If your builder hasn’t gone into liquidation but is unresponsive:

• Send formal written requests (email and registered post) asking them to resume works.

• Keep a record of all attempts to contact them.

• Seek legal advice if delays breach your contract terms.

• If non-responsiveness continues, consult with QBE or your solicitor about escalating the situation.

 

7. Getting Quotes

Once QBE accepts your claim, they’ll assess how much remains unpaid on your contract. This forms the base value for your claim.

Now it’s time to gather quotes to complete the build. Some key points:

• Your payout is capped at $200,000, minus a $500 excess.

• QBE may suggest builders they regularly work with—but it’s entirely up to you who you engage.

• If you use a QBE-recommended builder, they may send the quote directly to QBE.

• If you prefer to manage the process yourself, choose independent builders and ensure their quotes:

  • Are detailed and clearly itemised

  • Include all remaining works

  • Cover the same scope of works outlined in your original contract

 

8. What Happens After You Send the Quotes?

QBE will compare the quotes. If they’re within about 5% of each other, QBE will choose the lower value to process the claim. Your financial “loss” is then calculated by subtracting the unpaid portion of the original contract from the chosen quote.

Example:

• Remaining value of contract: $120,000

• Chosen quote to complete: $230,000

• Loss: $110,000

• Payout: $110,000 – $500 = $109,500

If the loss exceeds $200,000, QBE will still only pay $199,500.

 

9. How Is the Claim Paid?

For incomplete builds, QBE usually pays you directly. Once you provide your bank details, funds will be transferred to your account so you can engage your chosen builder and resume the build.

QBE steps out at this point—you’re in control of what happens next.

 

Feeling Overwhelmed?

Completely understandable. Reach out to arrange a chat, this is an area we’ve got a lot of experience in. Helping you resolve the situation in the best way is a service we are proud to offer.