A complex but sometimes necessary decision
Changing builders during construction is legally complex, expensive, and should be a last resort. But sometimes it's necessary, whether due to builder insolvency, serious breaches, or irreconcilable disputes. This guide explains the process based on Master Builders Association and Consumer Affairs guidance.
Keep records of all issues, communications, photos of defects, and timeline of problems. You may need this for legal proceedings or insurance claims.
Put all complaints and requests in writing. Give your builder formal notice of issues and reasonable time to rectify (typically 14-28 days depending on severity).
Check termination clauses, notice periods, and dispute resolution requirements. Most contracts require specific processes before termination.
Consult a building lawyer and/or independent building inspector before making any decisions. The cost of advice is far less than getting this wrong.
Many contracts require mediation before termination. Even if not required, it may resolve issues cheaper than changing builders.
Total cost of changing builders mid-construction often exceeds $50,000-$100,000 beyond what completion would have cost. Exhaust other options first.
No. The existing contract generally needs to be properly terminated first, which usually requires following specific processes in the contract. Engaging a new builder while the old contract is active creates legal and insurance complications.
We can provide guidance on your options and connect you with appropriate resources.
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