What is non-completion of building work?
We use the term non-completion of building work to refer to scenarios where a contractor has failed to complete all work under a contract for residential construction work.
You can lodge a claim for non-completion when a contractor does not finish the work they were contracted to carry out because:
- they go bankrupt (individual) or are insolvent, including liquidation (company) and have their licence cancelled.
- they die or are deregistered
- you validly terminate the contract (PDF) on the default of the licensed contractor.
It does not include where the contract has reached practical completion, but individual pieces of work have not been finished properly. For these instances you can apply for assistance through our defective work process.
Currently in a dispute?
If the building work remains unfinished due to a dispute between parties, we may be able to help you resolve this dispute and get the project moving again. See how we may be able to help with disputes about:
Who we can help
We may be able to help you with non-completion of residential construction work if you are a:
- property owner—you are the owner of the house or unit
- body corporate—you represent the body corporate of a residential complex (for common property only)
- authorised agent—if you have authorised someone to act as your agent, they are eligible to lodge on your behalf.
How we can help
If your contract for residential construction work was for a fixed price and the contractor is unable to complete the project, you may be entitled to a claim under the QBCC's Queensland Home Warranty Scheme for:
- additional completion costs including the repair of any defective work
- reimbursement of the insurable deposit under the contract if work has not yet started.
NOTE: If the work remains unfinished due to a dispute with the contractor about defective work or contractual or payment matters, you should seek to resolve that dispute through our dispute resolution services.
To qualify for a claim under home warranty
To qualify for a non-completion claim under the Queensland Home Warranty Scheme, your situation must meet the following criteria:
- the contract was for residential construction work
- the contract was for a fixed price
- the contract has been lawfully terminated on the contractor's default or the contractor has died, or the contractor is a company that no longer exists (e.g. deregistered), or the contractor is bankrupt or in liquidation and their licence has been cancelled
- the contract ended within 2 years after the day work starts under the contract.
- you make your claim before the day that is 3 months after the day the contract ends.
Non-completion with defects
If there are defects in the incomplete works, QBCC will:
- request that the contractor corrects the defects
- consider issuing a direction to rectify for the defects
- assess any outstanding defects as part of the non-completion claim, if the contractor fails to fix the defects within the specified time.
QBCC will not direct a contractor to rectify defective works if the contractor:
- as an individual—is bankrupt
- as a company—is in liquidation or has been deregistered with the Australian Securities and Investments Commission.
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Your contract must be validly terminated before a non-completion claim can be considered. This means the termination must be lawful and based on the terms of the contract, a serious breach, or other legal grounds. Validly terminated does not include mutual abandonment.
Note, you do not need to terminate your contract if the contractor: We can only process a claim for non-completion under home warranty if your contract is lawfully terminated. Note, you do not need to terminate your contract if the contractor:
- has died
- is a company that has been deregistered
- has had their licence cancelled and is an individual who is bankrupt or a company that is insolvent.
Do not try to terminate the contract yourself if the contractor has defaulted in some other way.
You should get legal advice to see whether you can and should terminate your contract. You can find a solicitor to help you by contacting the Queensland Law Society.
WARNING about terminating your contract.Terminating a building contract for any reason is a very serious matter that may, if not done properly, cause major financial and legal problems for a party wrongly terminating.
For a home owner, failure to properly terminate their contract may result in not being entitled to a claim under the Queensland Home Warranty Scheme administered by QBCC (e.g. cover for non-completion may not be available).
It is STRONGLY RECOMMENDED that owners and contractors obtain formal legal advice before taking steps to terminate their building contract. If there is a written contract (as required under Queensland legislation), proper termination will usually require strict adherence to the documentation and procedures for termination set out in the General Conditions of the contract itself.
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As well as terminating your contract, we recommend you:
- secure the building site. Health and safety on the site is the responsibility of the property owner. QBCC doesn't provide a ‘make safe’ service. If there are any immediate safety concerns, we recommend you take steps to mitigate any risk to occupants and/or visitors (e.g. restrict access to any unsafe areas).
- do not respond to demands for payments from other parties, including from subcontractors
- instruct your bank in writing to make no further payments to your contractor
- do not engage another contractor, or attempt any work on-site yourself, without QBCC approval as this will affect your claim.
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Mandatory documents
You will need to supply us with:
- a copy of the contract (including terms and conditions)
- specifications (if referred to in your contract)
- variation documents
- approved building plans if the work requires approval
- council development or building approval if the work requires approval
- evidence of all payments made to contractor, e.g. copies of receipts issued by the contractor
- evidence the contract is at an end, e.g. a copy of all termination notices and any other correspondence about terminating the contract sent to the contractor.
Other useful documents
It may also be useful for you to provide us with:
- engineering or other types of Inspection Certificates for work completed to date
- quotes to complete work if you have any
- evidence of site work not having commenced if making a claim for refund of deposit
- drainage plan
- relevant correspondence between you and the contractor.
This may not be all the information we will need to assess your claim. We may contact you after you lodge your claim to request more documents.
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We want to process your complaint quickly and you can help us by making sure you take the time to read all instructions. Entering the right dates and values is essential and helps us process your complaint quickly.
Be sure to let us know if you are concerned about any dangerous or unsafe items.To lodge online you can:
- login or register for myQBCC
- navigate to the complaints and disputes tab
- scroll down to find the Non-completion claim form
- click the ACTION arrow and choose to start a new form.
- complete form
- upload digital copies of your supporting documents
Manual option
You can choose to download and complete a manual form. You can find the manual form below in the related resources section.
To lodge your application you need to provide us with:
- the completed form
- all supporting documentation.
You can lodge the completed claim form and copies of all related documentation to the QBCC (do not send your originals):
- in person at a QBCC service centre
- by mail and post it to us with all supporting documentation.
- feedback and enquiries form (you will need to be registered for myQBCC and logged in to attach documents to the form).
Is your site secure and safe?
We recommend that you secure the building site from all unauthorised parties.
Once a contract has been terminated, health and safety is the property owner’s responsibility. QBCC does not provide a 'make safe' service.
If you have any immediate safety concerns, we recommend you take steps to mitigate any risk to occupants and visitors (e.g. restrict access to any unsafe areas).
What happens next?
We will create a case for your claim and it will be assigned to a Resolution Services officer for assessment. If it qualifies, we will progress it as a home warranty insurance non-completion claim. You will receive an email confirming receipt of the claim, which provides your unique case number. You will receive an email confirming receipt of the claim, which provides your unique case number.
If it does not meet the criteria for a claim, we will provide you with a decision letter allowing you to apply to the QCAT if you would like their help.
