What happens if your NSW builder becomes insolvent
Short answer
Check your Home Building Compensation certificate and contact the insurer promptly. HBC can help with eligible incomplete or defective work if the builder becomes insolvent. Claim limits, time limits and exemptions apply. Confirm the next steps with the insurer and Building Commission NSW.
Check your project cover
Find the HBC certificate for your address and builder. Use the official HBC Check to check that a certificate was issued. A general builder eligibility letter is different from insurance for your project.
HBC is generally required for residential work over A$20,000 including GST, unless exempt. The builder must provide the certificate before starting work or taking a payment, including a deposit. See SIRA’s insurance requirements.
Get help with the next step
Contact your insurer promptly about incomplete work or defects. HBC can cover eligible claims when a builder dies, disappears, becomes insolvent, or has a licence suspended for failing to comply with a court or tribunal money order. Limits and time periods apply.
The NSW Government’s builder insolvency guide explains the official complaint and insurance paths. Keep your contract, payment records, correspondence and photographs. Get independent advice before making further payments or replacing the contractor.
Read the current record
Check the builder for recorded licence and linked company status, then open each source and its date. BuilderVet does not predict insolvency or show a director’s history across other companies. A check with no matching finding does not establish that the builder is financially sound.
Related questions
- Does HBC cover every building project?
- No. HBC is generally required for residential work over A$20,000 including GST, unless exempt. Check the certificate for your specific project and confirm eligibility with the insurer.
- Does BuilderVet predict builder insolvency?
- No. BuilderVet shows linked company status and supported public records with dates. It does not predict financial distress, provide credit reports or link directors across companies.
Put the records beside your quote
Search the exact business on your quote. Read the source dates and gaps before you decide.
Updated 8 Oct 2026