Renovating or building a home can be a stressful process, and unfortunately, sometimes things can go wrong. One of the worst-case scenarios is if your builder goes bust before completing the project. This can leave you in a difficult and potentially costly situation, but there are steps you can take to protect yourself and your investment. Here are the top 5 actions to take if your builder goes bust:
1. Contact the builder
The first step is to contact the builder to find out what’s going on. They may be able to explain the situation and offer a solution, such as transferring the project to another builder or arranging for a refund. Make sure to keep a record of all communication with the builder, including emails and phone calls.
2. Check your contract
Review your contract carefully to see what provisions are in place. Look for clauses relating to insolvency or bankruptcy and check if there are any termination or cancellation clauses. This will help you understand your rights and obligations, and whether you are entitled to a refund or compensation.
3. Contact your insurance provider
If you have a home warranty or builders’ insurance policy, contact your provider to see if you are covered. Some policies may provide protection for unfinished work or losses due to the builder’s insolvency.
4. Contact the authorities
If you have paid a deposit or any money to the builder, and they have not completed the work or are unable to provide a refund, you may need to escalate the situation to the authorities. Contact your local consumer protection agency or fair trading office for advice on your options.
5. Seek legal advice
If the situation becomes more complex or you cannot reach a resolution, it may be time to seek legal advice. A lawyer can help you understand your legal rights and obligations and may be able to negotiate on your behalf to reach a settlement.
If your builder does go bust, it’s important to take immediate action to protect your investment. By following these steps, you can minimise the impact of the situation and work towards a solution that meets your needs.
