My Builder Has Gone into Administration After Handover – What Now?
So your builder handed over the keys, but now the cracks are showing. Literally.
If you’re dealing with maintenance issues, unfinished items or defects and the builder isn’t responding, here’s what to do next.
1. First, confirm what’s happening
If you think your builder has gone into administration or liquidation:
Check the ASIC website
Look for court actions or news articles
Contact QBE. They may already have been contacted by other clients and have updates
This happens more often than you’d think, and insurers sometimes know what’s going on before you get official confirmation.
2. Check your contract type
To make a claim through Home Indemnity Insurance, you’ll need to have:
Signed a Lump Sum Building Contract with a registered builder
Received handover with unfinished work or unresolved defects
If that’s you, you’re likely eligible to claim.
3. Contact QBE and request a claim form
You can call QBE on 1300 790 723 or visit the QBE contact page.
When you speak to them, explain:
Handover has taken place
Some items haven’t been completed or defects have appeared
The builder isn’t responding to your calls or emails
They’ll send you a claim form and let you know what to include.
4. Get your documents together
Just like with an unfinished build, you’ll need to collect:
Your contract and any signed variations
Proof of payment (invoices, receipts, bank records)
Inspection reports or defect lists
Photos of what still needs to be fixed or completed
Copies of your attempts to contact the builder
Make digital backups and keep a printed copy of everything too.
5. Fill out the claim form
Only complete the sections relevant to your situation. You’ll need to:
Include the total contract value and any variations
State how much has been paid in total
List the outstanding items or attach a defect report
Add any supporting photos
Send the completed form and all documents to the email QBE provides.
6. QBE will inspect the site
QBE will arrange an independent inspection. This person will:
Visit your property to assess the issues
Write a detailed report
Submit it to QBE for review
Once they’ve reviewed it, QBE will let you know which items are covered by the insurance policy.
7. Start getting quotes
Once your claim is approved, QBE will ask you to get quotes to complete the approved work.
Keep in mind:
The payout is capped at $200,000, minus a $500 excess
QBE can give you names of builders they work with regularly
Builders recommended by QBE might send their quote straight to QBE
If you want to stay in control, use your own builder and send the quote to QBE yourself
All quotes should be detailed, itemised and cover the full scope of what needs to be done.
8. What happens after you submit the quotes?
QBE will compare the quotes. If they’re within about 5 percent of each other, they’ll usually go with the lower one.
They’ll then subtract the $500 excess from that amount to calculate the payout.
Example:
Approved quote: $15,000
Insurance payout: $14,500
9. Who gets paid?
For post-handover claims, QBE usually pays the builder or contractor directly.
That means you need to be confident in who you’re engaging. Once QBE approves the quote, they’ll manage the payment to that business. Make sure it’s someone you trust to finish the job properly.
Need help?
At Build Insight WA, we help homeowners navigate situations just like this. Whether it’s unresponsive builders, unfinished jobs or defect dramas, we can help you understand your rights and your options.
Get in touch today to talk through your next step.
