When a subcontractor liquidates mid-job

Secure the jobsite first

When a formwork subcontractor walks off and then goes into liquidation, the damage shows up on site first. Access is messy, the program slips, and every idle day adds cost. ASIC says liquidation shifts the claim into a formal process, so the first move is to secure the site, plant, materials and records left behind. ([asic.gov.au](https://www.asic.gov.au/regulatory-resources/insolvency/insolvency-for-creditors/liquidation-a-guide-for-creditors?utm_source=openai))

Do that before anyone rehandles stock or scrap. Photograph what is there, note serial numbers, and keep delivery dockets with the photos. If you can prove what was supplied, what was installed, and what was still on site, you are far better placed when the liquidator later asks for evidence. ([asic.gov.au](https://www.asic.gov.au/regulatory-resources/insolvency/insolvency-for-creditors/liquidation-a-guide-for-creditors?utm_source=openai))

Notify the liquidator in writing

Then notify the liquidator immediately and ask one practical question: what belongs to the company, what belongs to your job, and what needs to be collected or confirmed. ASIC says the liquidator will call for a proof of debt if funds may be available, and supporting invoices can be required. Keep every answer in writing. ([asic.gov.au](https://www.asic.gov.au/regulatory-resources/insolvency/insolvency-for-creditors/liquidation-a-guide-for-creditors?utm_source=openai))

That written note should include the appointment date, the person you spoke to, and any reference number. If the liquidator wants more detail, send it quickly. You are not trying to argue the whole case on the phone. You are building a clean file that shows the collapse, the missing trade, and the extra cost trail. ([asic.gov.au](https://www.asic.gov.au/regulatory-resources/insolvency/insolvency-for-creditors/liquidation-a-guide-for-creditors?utm_source=openai))

Source: Official guidance

Replace the trade and lock in the cost

Replace the trade fast, but compare more than the headline price. business.gov.au says written contracts should set out timeframes, delivery terms and dispute resolution terms. Use those points when you ask replacement subcontractors for quotes so you can compare lead time, scope, insurance, and any urgency premium on equal terms. ([business.gov.au](https://business.gov.au/people/suppliers?utm_source=openai))

Keep the original subcontract beside the replacement quote. The useful number is the difference between the old price and the new completion cost, not just the invoice total. Add freight, call-out, supervision, and any extra preliminaries that arose because the job was forced to change mid-stream. Record why the gap grew, not only how big it is. ([business.gov.au](https://business.gov.au/people/suppliers?utm_source=openai))

Build the extra cost evidence

Record the overrun in separate lines. If the collapse caused extra labour, plant hire, temporary works, rework, or remobilisation, keep each item visible. That makes the claim easier to explain and harder to dismiss as vague. It also helps you spot which costs are truly linked to the liquidation and which belong elsewhere. ([asic.gov.au](https://www.asic.gov.au/regulatory-resources/insolvency/insolvency-for-creditors/liquidation-a-guide-for-creditors?utm_source=openai))

When the liquidator asks for formal proof, lodge it with copies of the contract, invoices, dockets and the cost-to-complete note. ASIC says the proof of debt form should be supported by relevant documents, and the liquidator must give at least 14 days' notice of the deadline. Do not wait until the final afternoon. ([asic.gov.au](https://www.asic.gov.au/regulatory-resources/insolvency/insolvency-for-creditors/liquidation-a-guide-for-creditors?utm_source=openai))

Lodge the proof and move on

Your last step today is simple: one file, one timeline, one claim. Put the liquidation notice, photos, replacement quote, cost difference and correspondence in the same folder so nothing gets lost when the program gets busy again. That record is what turns a messy site problem into something you can actually pursue. ([asic.gov.au](https://www.asic.gov.au/regulatory-resources/insolvency/insolvency-for-creditors/liquidation-a-guide-for-creditors?utm_source=openai))

If the paperwork is scattered or the numbers are unclear, call CRP today about creditor management. We coordinate independent qualified professionals who can help you organise the file and pressure-test the claim before it goes in. This is general information only, not legal advice, and it does not promise a recovery outcome. ([asic.gov.au](https://www.asic.gov.au/regulatory-resources/insolvency/insolvency-for-creditors/liquidation-a-guide-for-creditors?utm_source=openai))