The first 48 hours
- Secure the site. Change the locks. Photograph everything - inside and out. Document current stage.
- Do NOT pay any invoice that lands. Subcontractors, suppliers, or people claiming the builder owes them. Nothing until the liquidator is appointed.
- Contact your building indemnity insurer. In SA it’s HIA, in VIC it’s VMIA, in QLD it’s QBCC. Get a claim number in writing.
- Speak to a construction solicitor. A single consultation is money well spent.
- Check ASIC. Find the appointed liquidator - all future claims run through them.
What building indemnity typically covers
- The cost of completing the build up to the original contract price
- Defects rectification for up to 6 years (SA)
- Deposit protection (in some jurisdictions, up to 5% of contract value)
Finishing the build with a new builder
Most owners appoint a "completion builder" - a licensed builder who takes over the remaining work at cost-plus. Indemnity pays the gap between what the collapsed builder was contractually going to charge and what the completion builder actually charges. You are not out-of-pocket beyond your excess in most cases.