AustraliaMy builder didn't finish the job on time and left the site unfinished. What compensation can I claim?
You may claim compensation for losses caused by the builder’s failure to complete on time, including reasonable costs to finish the work or rent you paid due to delay — but only if the contract specifies a completion date and the delay was unreasonable.
What the Law Says
Australian building contracts are governed by state-based legislation and common law. Key rights and remedies come from the Home Building Act and Australian Consumer Law, which require builders to carry out work with due care and within agreed timeframes.
If your builder fails to complete the work by the agreed date — and that date is clearly stated in writing — you may be entitled to compensation for losses directly caused by the delay or abandonment. This includes extra rent, temporary accommodation costs, or reasonable expenses to engage another builder to finish the job.
However, the law does not automatically award compensation just because work is late. You must show the delay was unreasonable, that you suffered real financial loss, and that you took reasonable steps to minimise that loss (e.g., giving written notice and allowing time to fix the problem).
Under the Home Building Act 1989 (NSW), a builder must not abandon residential building work without reasonable cause (s. 10). If they do, you may terminate the contract and claim damages. Similar provisions exist in other states, such as the Domestic Building Contracts Act 1995 (Vic) and the Queensland Building and Construction Commission Act 1991.
Statutory TextA contractor must not abandon residential building work without reasonable cause.
— Home Building Act 1989 (NSW), s. 10 — Abandonment of residential building work
Statutory TextA person must not, in trade or commerce, engage in conduct that is misleading or deceptive or is likely to mislead or deceive.
— Australian Consumer Law, s. 18 — Misleading or deceptive conduct
What to Do
Check your written contract for the agreed completion date and any clauses about delays or termination.
Send a formal written notice to the builder requiring them to complete the work within a reasonable time (e.g., 10 business days).
Keep records of all extra costs (rent receipts, quotes from other builders, correspondence).
If the builder doesn’t respond or refuses to act, consider terminating the contract and seeking compensation through NSW Fair Trading, VCAT, QCAT, or NCAT depending on your state.
For claims over $500,000 or complex disputes, consult a building lawyer before filing.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.