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What can I do if my NSW build is running late?

By BuilderVet team. Last reviewed 2 November 2026.

In NSW, the law says your builder must do the work with due diligence and within the time stated in the contract, or within a reasonable time if the contract doesn’t set one. If your build is running late, start by checking your contract and raising the delay in writing, then use Building Commission NSW’s free dispute resolution, and NCAT if that doesn’t work.

This guide explains your rights when a build is late, the steps we suggest, and when home building compensation (HBC) cover might come into play. It is general information, not legal advice. If your builder has gone into liquidation or bankruptcy, read our guide on what happens when a builder goes insolvent mid-build instead.

What does the law say about building delays?

Every NSW residential building contract carries statutory warranties, even if they aren’t written into it. One of them is that the work will be done with due diligence and within the time stated in the contract, or otherwise in a reasonable time. Building Commission NSW’s Consumer Building Guide describes this as the builder delivering in a reasonable timeframe, in line with the contract.

Statutory warranties can be enforced within time limits: six years for major defects and two years for all other defects. Our guide to building defect warranty time limits explains how those periods are counted, including when work is never finished.

What counts as “late” depends a lot on your contract. Many contracts deal with how the completion date can move, and what happens if it is missed. Read those clauses before you act, and get legal advice before you withhold payment or terminate.

What should I check in my contract?

Before you do anything, pull out the signed contract and look for:

  • the start date and the completion date or construction period
  • how the builder can claim more time, and what notice they must give you
  • whether the contract sets an amount the builder pays you per day or week of delay
  • the progress payment schedule and which stages are complete
  • signed variations, since variations can affect time as well as price
  • the dispute resolution and termination clauses

The NSW Government says progress payments should be for work actually done, not time on the job. If you are asked to pay a stage that isn’t finished, you can raise that too. Our guide to NSW home building contract requirements explains what a large jobs contract must contain.

What steps should I take?

Step What to do Why
1. Write to the builder Ask for the reason for the delay, a revised program, and a date for the next stage Building Commission NSW says to notify your builder and follow up with an email or letter
2. Keep records Photos of the site each week, dates nobody worked, messages, payment records Evidence for dispute resolution or NCAT
3. Check the builder’s status Licence record, company status and any insolvency notices A stalled site can be an early sign of financial trouble
4. Notify your HBC provider Write to them if work is incomplete The NSW Government says to notify your insurer in writing immediately
5. Building Commission NSW Lodge a complaint about incomplete work Free dispute resolution, and an inspection for some matters
6. NCAT Apply if dispute resolution doesn’t resolve it NCAT can make binding orders

Our guide to lodging a building complaint in NSW walks through step 5, and NCAT home building claims covers step 6.

When does home building compensation help with delays?

HBC is last-resort cover. icare says it is designed to step in only when your builder can’t, usually because the builder has:

  • become insolvent, for example bankrupt or in liquidation
  • died
  • disappeared and can’t be found
  • had their licence suspended for not complying with a court or NCAT order to pay you money

If one of those trigger events happens and work wasn’t started or finished, icare says you may be covered for loss of your deposit and the cost to complete the work, up to the policy limit. A builder who is still trading but simply slow is generally not an HBC claim. icare says that if your builder is still trading, you usually need to try other options first.

Time limits matter. icare lists a 12 month time limit to notify it where work did not start or was not completed. That’s one more reason to notify your HBC provider in writing as soon as you know work is incomplete.

Checklist: is this a delay or a bigger problem?

Watch for these signs, and check the public record if you see more than one:

  • No workers on site for weeks without explanation
  • Requests to pay a stage early, or before it is complete
  • Subcontractors or suppliers telling you they haven’t been paid
  • The builder stops answering calls and emails
  • A change of company name on invoices
  • Pressure to sign a variation increasing the price to keep going

Our guide to spotting a phoenix builder explains the name-change warning sign.

Worked example: a renovation three months behind

Jess signed a large jobs contract for a $250,000 renovation with a 30-week construction period. At week 42, work is sporadic and the builder asks for the lock-up payment, but the windows aren’t in.

  1. Jess reads the contract’s time clauses and checks whether the builder gave any written extension claims.
  2. She emails the builder asking for the reasons, a revised program and a date for lock-up, and says she’ll pay the stage once it is complete.
  3. She checks the builder’s licence, company and insolvency records.
  4. She writes to her HBC provider to say work is incomplete.
  5. When replies stop, she lodges a complaint with Building Commission NSW, and keeps her NCAT time limits in view.

How BuilderVet helps

Start with the free check on your builder to see what the public registers show today. If you’re building in NSW, Build Watch watches your builder for 24 months for a one-off A$79, and alerts you if something changes, like a licence status or company record, while your job is underway.

Frequently asked questions

Is my builder allowed to finish late?

The statutory warranty requires work within the time in the contract, or a reasonable time if none is set. Whether a particular delay is a breach depends on your contract, including its extension of time clauses.

Can I stop paying if the build is late?

Progress payments should match work actually done, not time on the job. Withholding a payment that is properly due can put you in breach, so get advice before you withhold anything.

Does Building Commission NSW handle delays?

It handles disputes about incomplete home building work and offers free dispute resolution. It warns current waits may be up to 18 weeks.

Will home building compensation pay for delays?

Generally only after a trigger event, such as the builder becoming insolvent, dying or disappearing. It may then cover a lost deposit and the cost to complete, up to the policy limit.

When should I tell my HBC insurer?

The NSW Government says to notify your insurer in writing immediately when you become aware of incomplete or defective work.

Can I terminate my contract for delay?

Possibly, but it depends on the contract and the general law. Terminating without a proper basis can expose you to a claim, so get legal advice first.

Sources

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Last reviewed 2 Nov 2026