Help & Guidance

Changing Builders Mid-Build

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.

Before You Change Builders

Document Everything

Keep records of all issues, communications, photos of defects, and timeline of problems. You may need this for legal proceedings or insurance claims.

Communicate in Writing

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).

Review Your Contract

Check termination clauses, notice periods, and dispute resolution requirements. Most contracts require specific processes before termination.

Get Independent Advice

Consult a building lawyer and/or independent building inspector before making any decisions. The cost of advice is far less than getting this wrong.

Try Mediation

Many contracts require mediation before termination. Even if not required, it may resolve issues cheaper than changing builders.

The Real Cost of Changing Builders

  • • Legal fees: $2,000 - $10,000+
  • • Independent inspection: $500 - $2,000
  • • Premium for new builder taking over: 10-30% above normal rates
  • • Rectification of existing issues: Variable
  • • Delays: 2-6+ months while sorting out
  • • Potential loss of payments already made

Total cost of changing builders mid-construction often exceeds $50,000-$100,000 beyond what completion would have cost. Exhaust other options first.

Common Questions

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.

Need Help With Your Situation?

We can provide guidance on your options and connect you with appropriate resources.

1300 885 919

Cookies on. Learn more