The builder collapsed halfway through your job.

A half-finished job needs a dated snapshot

A subcontractor is halfway through a commercial project when the builder collapses. Some work has been invoiced, some completed work has not, and materials are waiting off site. The principal wants the job finished quickly. Before accepting new instructions, the subcontractor needs to separate the old contract and claim from whatever arrangement may replace it.

Record the job as it stands

Create a dated progress record with quantities, photographs, approved changes and outstanding work. Reconcile invoices and payments. Identify completed but unbilled work without assuming every forecast contract amount is now a debt.

Record materials on and off site, who paid for them and any relevant ownership terms. Preserve the evidence before the site changes or another contractor starts. A clear snapshot is useful for both the insolvency claim and later discussions about completion.

Confirm who can give instructions

Verify the appointment and the entity involved. ASIC's insolvency guidance points to Published notices for checking appointed administrators. The principal, site manager and practitioner may have different roles; do not assume any one of them can bind the others.

Ask for written clarification of who wants further work and on what basis. A request to help finish the project does not automatically transfer the old builder's debt to the person making the request.

Source: Insolvency — ASIC

Review the existing contract before acting

Have termination, suspension, access and payment provisions assessed in light of the appointment. Do not simply walk away, hand over equipment or sign a replacement agreement without understanding the effect on existing rights.

If a new contract is proposed, compare its scope with unfinished work and defects already alleged. Identify responsibility for earlier work, warranties and payment. Keep the old debt visible rather than allowing it to disappear into a new price without a deliberate agreement.

Choose a funded way forward

Cost the remaining labour, materials and site requirements. Confirm the new payer and payment terms before committing. Continuing may preserve valuable work, but it should not require your business to finance another uncertain arrangement.

At the same time, submit the supported old claim and update the cash forecast. Decide who manages each file. A controlled restart or exit depends on knowing which obligations belong to the old job and which you are agreeing to now.

Separate the old contract from the restart

Capture a dated progress, account and materials record.

Verify the authorised decision-makers and review existing contract rights.

Assess any replacement contract separately from the old debt and confirm how it will be funded.

Call CRP today about a builder's collapse during an unfinished job.