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What happens if your QLD builder becomes insolvent

Short answer

You may be able to make a non-completion claim under the Queensland Home Warranty Scheme. The contract must be fixed-price. If the builder is insolvent, their licence must also be cancelled. Lodge your claim with QBCC within 3 months after the contract ends. Stop payments, secure the site and get legal advice before you terminate the contract.

Check if you can claim

QBCC calls this a non-completion claim under the Queensland Home Warranty Scheme. To qualify:

  • the contract was for residential construction work;
  • the contract was for a fixed price;
  • the contract has ended because you validly terminated it on the builder’s default, the builder died, the company no longer exists, or the builder is bankrupt or in liquidation and their licence has been cancelled;
  • the contract ended within 2 years after work started, or within 2 years after the contract date if work had not started;
  • you lodge the claim before the day that is 3 months after the contract ends.

Cost-plus and construction management contracts do not have non-completion cover.

Take these steps first

  1. Secure the site. QBCC says health and safety on the site is the owner’s responsibility. QBCC does not provide a make-safe service.
  2. Stop payments. Tell your bank in writing to make no further payments to the contractor.
  3. Do not answer demands for payment from other parties, including subcontractors.
  4. Do not hire another contractor or do work on site yourself without QBCC approval. This will affect your claim.
  5. Get legal advice before you terminate. QBCC says a valid termination does not include mutual abandonment. A wrong termination can cost you the claim.
  6. Gather documents. Your contract, plans, variations, approvals, receipts for every payment and any termination notices.

Then lodge the non-completion claim through the QBCC Portal.

What the claim can pay

  • Work not started: QBCC refunds the deposit you paid, or the maximum deposit allowed by law, whichever is less.
  • Work started: QBCC pays the difference between the money you still hold under the contract and the cost to finish the work with another licensed contractor.
  • Accommodation, if work has started: up to $5,000, or $10,000 with optional additional cover. Claim it within 28 days of your home being liveable.

The scheme pays up to $200,000 for non-completion. QBCC can pay less if you paid more than the lawful deposit, paid ahead of the contract schedule, or the contract was underpriced by more than 30%.

Read the current record

Check the builder for the QBCC licence, QBCC suspensions and cancellations, and linked ASIC and ABN records. Open each source and its date. QBCC can cancel a licence after an insolvency event. BuilderVet does not predict insolvency. A check with no record does not show that a builder is financially sound. Build Watch covers NSW builders only. See also how to check a QLD builder.

Sources checked 20 Oct 2026.

Sources

Related questions

Do I need to terminate the contract first?
Not if the contractor has died, is a company that has been deregistered, or has had their licence cancelled and is bankrupt or insolvent. In other cases QBCC strongly recommends formal legal advice before you terminate.
Does home warranty cover a cost-plus contract if the builder goes broke?
No. Non-completion cover is not available for cost-plus or construction management contracts. Defective work cover can still apply.
Does BuilderVet predict builder insolvency?
No. BuilderVet shows QBCC licence facts, QBCC suspensions and cancellations, and ASIC and ABN records where linked, with dates. It does not predict financial distress.

Put the records beside your quote

Search the exact business on your quote. Read the source dates and gaps before you decide.

Find your builder See a QLD sample report

Updated 20 Oct 2026