Your builder went into liquidation. Here are your rights as a homeowner in WA.

When a builder goes into liquidation, the company is declared insolvent, meaning it can no longer pay its debts. A liquidator is appointed to wind up the business, assets are sold to pay creditors, and your half-built home is left sitting there with no one responsible for finishing it. It's a deeply unfair situation and unfortunately one that too many Perth homeowners have experienced firsthand.

The good news is that Australian law offers real protections. Here's what you need to know.

Home Warranty Insurance is your first call. Also known as Domestic Building Insurance, this cover is mandatory for most residential building projects valued above $12,000 in Western Australia. If your builder goes into liquidation, Home Warranty Insurance covers the cost of completing your build according to the original contract terms, and the rectification of any defective work done before liquidation occurred.

To make a claim, contact your insurer as soon as you're aware of the liquidation. You'll need a letter from the liquidator confirming insolvency, plus your contract and any documentation of work completed so far. The insurer will assess the claim and either pay you directly or appoint a builder to complete the work. Time limits apply, typically six years for structural defects and two years for non-structural issues, so don't delay.

Your building contract matters too. If your builder can no longer fulfil their obligations, you generally have the right to terminate the contract. Once terminated you can engage a new builder to complete the work. Depending on the terms of your contract you may also be entitled to seek compensation for additional costs incurred as a direct result of the liquidation.

Australian Consumer Law adds another layer of protection. If your builder engaged in misleading or deceptive conduct before going under, or if your contract contained unfair terms, you may have additional grounds for compensation or remedy under ACL. A building lawyer can advise you on whether this applies to your situation.

Before any of this happens, verify your builder's credentials. Check that they're licensed and in good standing with the Building Commission of Western Australia. Confirm that Home Warranty Insurance is in place before making any significant payments and ask to see the certificate of insurance for your specific project. Document everything, every payment, every communication, every site visit. If things go wrong that documentation becomes invaluable.

At Patterson Construction every client has Home Indemnity Insurance in place from day one. Transparency about coverage, costs, and timelines isn't something we offer as a bonus, it's how we work. If you're currently dealing with a builder liquidation and need honest advice on next steps, call Lucas. He's navigated this process with clients before and will tell you exactly where you stand.