Validly terminate
If the contractor is not dead, or their licence is not cancelled and they are insolvent, a consumer must validly terminate their building contract with their contractor to be eligible for a non-completion claim.
To validly terminate the contract the contractor must be in substantial breach of the contract. In general terms, a consumer may lawfully terminate a building contract if there is a clause in the contract that gives a right to terminate in the circumstances, or there is a right to terminate in the circumstances that is not stated in the contract but is allowed under common law or legislation.
The law governing contract termination can be quite complex and there are risks involved in terminating a contract. It is recommended that a solicitor be engaged to assist consumers and provide legal advice about termination.