What to do when a builder serves a notice of default

Read the notice first

When a builder serves a notice of default, the clock starts immediately. Your first job is to identify exactly what breach is alleged, what clause they rely on, and how many days you have to respond. Do not guess from the heading. The short response window is often the only chance to protect the contract and your next payment. ([business.gov.au](https://business.gov.au/people/contractors/end-a-contract?utm_source=openai))

Pull out the signed contract, variations, site instructions, progress claims, emails and photos. Match each alleged breach against the paper trail. If the notice points to missed dates, incomplete work or a quality issue, write down the factual position before you answer. A clean record now is more useful than a heated phone call later. ([business.gov.au](https://business.gov.au/people/contractors/prepare-a-contract?utm_source=openai))

Fix any genuine breach fast

If part of the complaint is real, act on it during the notice period. Finish the task, make the safety fix, replace the item or correct the defect if you can do so properly and safely. Tell the builder what you have done and when. A genuine fix is stronger than an argument about who is to blame. ([business.gov.au](https://business.gov.au/people/contractors/end-a-contract?utm_source=openai))

Keep proof of every repair step. Save updated photos, delivery dockets, texts, plant records and any revised program. If the alleged problem can be cured, the practical question is whether you have cured it within time, not whether the relationship feels strained. Silence or vague promises usually help the other side more than they help you. ([business.gov.au](https://business.gov.au/people/contractors/end-a-contract?utm_source=openai))

Source: Official guidance

Dispute the wrong parts in writing

If the notice gets the facts wrong, answer in writing before the deadline expires. Say which breach you deny, why you deny it, and what documents support your position. Keep it factual and short. business.gov.au recommends written notice for disputes and contract clauses that set clear timeframes, because disputes are easier to manage when the process is documented. ([business.gov.au](https://business.gov.au/people/contractors/prepare-a-contract?utm_source=openai))

Avoid a long blame letter. State the issue, attach the evidence and ask for the notice to be withdrawn or narrowed. If the builder wants a meeting, confirm the date and follow it with an email summary. A written reply does not need to be dramatic to be effective. It just needs to be on time, clear and consistent. ([business.gov.au](https://business.gov.au/people/disputes/prevent-manage-and-resolve-disputes?utm_source=openai))

Keep performing unless advised otherwise

Unless your contract, site directions or legal advice say otherwise, keep doing the work you were engaged to do. Stopping without a proper basis can create a second problem and hand the builder another complaint. business.gov.au notes that ending a contract because of breach depends on the seriousness of the breach and the contract terms. ([business.gov.au](https://business.gov.au/people/contractors/end-a-contract?utm_source=openai))

That does not mean ignore your own risk. If the site is unsafe, access is blocked, or the instructions have changed, record the issue and seek advice before walking away. Keep the job moving where you can, but do it with dated notes, updated programs and written confirmation of any directions that affect cost or time. ([business.gov.au](https://business.gov.au/people/contractors/end-a-contract?utm_source=openai))

Use the notice period to protect payment

The notice period is not just about blame. It is your chance to keep the contract alive, reduce the size of the dispute and protect your entitlement to payment for work already done. If you are unsure whether the notice is valid, whether the response should be a cure or a denial, or whether the project is moving toward termination, get help quickly. ([business.gov.au](https://business.gov.au/people/contractors/end-a-contract?utm_source=openai))

CRP coordinates independent qualified professionals who can help you work through the notice, your records and the next response without making promises about the outcome. Bring the contract, notice, photos, emails and any progress claim history. If you want a practical dispute resolution plan today, call CRP now so you can respond inside the notice period and keep your options open. ([business.gov.au](https://business.gov.au/people/disputes/prevent-manage-and-resolve-disputes?utm_source=openai))