What can I do if my builder stops responding?

Send a formal written notice (email is sufficient) stating that you require a response within 5 business days confirming the start date and updated timeline. Keep a record of all attempts to contact. If there is no response, issue a second notice stating that if work does not commence by a specified date you will treat the contract as abandoned and seek recovery of your deposit. For contracts covered by your state's home building legislation, your state building authority (QBCC, VBA, NSW Fair Trading etc.) has a dispute resolution process you can initiate.

Can I get my deposit back if my builder doesn't start?

Yes, in most circumstances, if your builder has taken a deposit and failed to commence work within a reasonable time or the agreed timeframe, you are entitled to recover that deposit. In AU, residential building contracts are subject to deposit caps — typically 5–10% depending on the state. If a builder has taken more than the statutory cap, they are in breach regardless of the contract terms. Contact your state building authority for the dispute process specific to your state.

What is domestic building insurance and does it cover a builder who disappears?

In most Australian states, builders are required to take out Domestic Building Insurance (also called Home Warranty Insurance) for residential work above a threshold (typically $20,000). This insurance protects homeowners if the builder dies, disappears, or becomes insolvent before completing the work. It does not cover disputes with a builder who is still trading. If your builder has disappeared and you have a contract, contact your state building authority to check whether insurance was taken out and how to lodge a claim.

When Your Builder Goes Quiet — Rights, Deposits, and Next Steps

Plan

Understand your legal position before you act

The real issue

A builder going quiet is not just a communication problem — it may indicate financial difficulty, licence issues, or deliberate avoidance. Your response needs to create a documented paper trail from the first missed contact. Verbal conversations, unanswered calls, and frustrated texts don't constitute a formal record. Written notices to a verifiable address do.

AU residential building law is state-based — the process in Queensland (QBCC) differs from Victoria (VBA), NSW (NSW Fair Trading), and other states. All have dispute resolution pathways, but the trigger points, deposit caps, and insurance requirements differ. The state authority is your first port of call before engaging a lawyer.

Deposit caps by state (residential building work): Most AU states cap the deposit a builder can take before work commences. NSW: 10% for contracts under $20,000, 5% above. QLD: 5% for contracts over $3,300. VIC: 5% for contracts over $10,000. If your builder has taken more than the statutory cap, they are in breach of the building legislation regardless of what the contract says.

If the builder appears to have ceased trading: Search ASIC's companies register and your state's building licence register immediately. If their licence has lapsed or been suspended, report this to the state building authority — it may trigger the domestic building insurance process, even if the builder hasn't formally disappeared.

Document

Build your record — what you need before escalating

Every step you take from here needs to be documented. Create a simple chronological log — date, what happened, what you did, what response (if any) you received.

1
Gather your contract documentsSigned contract, all variation orders, payment receipts, bank statements showing what you've paid, and all written correspondence. If the contract is verbal, write down your best recollection of the terms.
2
Log all contact attemptsDate, time, method (call, text, email), and outcome. Unanswered calls noted. Screenshots of unread messages. This becomes your evidence of attempted communication.
3
Photograph the current state of the siteIf work has started, photograph everything — completed work, incomplete work, materials on site, any damage. Date-stamped photos are important if you later need to prove what state the site was in.
4
Verify their licence statusCheck their licence on the state building authority register. Note the status, licence number, and any conditions or suspensions.
5
Check for domestic building insuranceFor contracts above the state threshold (~$20,000 in most states), your builder is legally required to take out domestic building insurance naming you as the beneficiary. Ask them for the certificate of insurance. If they can't provide it, contact the state authority.

Act

Formal notices — what to send and when

Notice 1 — Requesting response (send after 5+ days of silence)

"I am writing to formally request confirmation of the start date and current timeline for the works at [address] under our contract dated [date]. I have attempted to contact you on [dates] without response. Please confirm within 5 business days. If I do not receive a response, I will be escalating this matter to [state building authority]."

Notice 2 — Notice of intention to terminate (send if Notice 1 ignored)

"Further to my notice of [date], you have not responded. I am writing to formally notify you that if work does not commence by [date, 10 business days from now], I will treat this contract as abandoned, seek recovery of my deposit of $[amount], and lodge a formal complaint with [state building authority]. I reserve all rights under the contract and applicable legislation."

Send to their registered address — not just their mobile. Email to the address on the contract, plus registered post to their business address if you have it. Keep the email receipt and the tracking confirmation for the letter.

Do not engage a second builder until the contract is formally terminated. If you engage someone else to complete the work while the original contract is still technically active, you may complicate your right to claim costs from the original builder. Get formal advice from the state building authority or a solicitor before proceeding.

Escalate

State-by-state escalation — who to contact

State	Authority	Process	Contact
NSW	NSW Fair Trading	Lodge complaint online — mediation first, then tribunal (NCAT)	13 32 20
VIC	Victorian Building Authority (VBA)	Dispute resolution process — may refer to VCAT	1300 815 127
QLD	QBCC	Formal complaint, then dispute resolution process	139 333
SA	Consumer and Business Services	Complaint lodgement — mediation then SACAT	131 882
WA	Building Commission WA	Complaint process — may refer to State Administrative Tribunal	(08) 6251 2300
TAS	Consumer, Building and Occupational Services	Complaint and mediation process	1300 654 499
ACT	Access Canberra	Complaint lodgement and dispute resolution	13 22 81
NT	NT Building Advisory Services	Complaint and mediation process	(08) 8999 8962

Before engaging a lawyer

A solicitor specialising in building disputes costs $300–$500/hour. The state building authority's dispute resolution process is free. For most residential disputes, the state authority process is the right first step — it is specifically designed for these situations, mediation is often effective, and it preserves your options if the matter does need to go to tribunal. Use the lawyer when the authority process fails, not before it.

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