Builder Didn’t Finish the Job in New South Wales: Your Step-by-Step Legal Options

If your builder didn’t finish the job in New South Wales, send the builder a written request that lists every unfinished item as a numbered schedule with a date to complete each one, then refer the dispute to Building Commission NSW, and only then apply to NCAT. NCAT will not accept a home building application until the dispute has been referred to the regulator, unless the matter is exempt. The statutory warranties in section 18B of the Home Building Act 1989 back your request whatever the contract price.

This guide sets out those three steps in order, the warranties and time limits that apply, and what the $20,000 figure you may have seen actually refers to. If your builder is in another state, read builder won’t finish the job: how to get the outstanding work done, by state. If the builder walked off with your deposit, read contractor walked off the job: how to get your deposit back.

The Three Steps in New South Wales

1. Write to the builder. A dated letter or email listing each unfinished item, numbered, with a date to reply and a date to finish.
2. Contact Building Commission NSW. If the work is still not finished, ask Building Commission NSW to help resolve the dispute.
3. Apply to NCAT. If the dispute is still not resolved, apply to the NSW Civil and Administrative Tribunal (NCAT), attaching evidence of the Building Commission NSW process unless your matter is exempt.

Your Rights Under New South Wales Law

Section 18B of the Home Building Act 1989 implies warranties into every contract to do residential building work by a licensed contractor, or by a person required to hold a contractor licence. There is no minimum contract price, and the warranties apply whether or not your contract mentions them. For unfinished work, the ones that matter most are:

• Due care and skill: the work will be done with due care and skill and in accordance with the plans and specifications set out in the contract (s 18B(1)(a))
• Due diligence and on time: the work will be done with due diligence and within the time stipulated in the contract or, if no time is stipulated, within a reasonable time (s 18B(1)(d))
• Fit for occupation: work on a dwelling will result, to the extent of the work, in a dwelling reasonably fit for occupation as a dwelling (s 18B(1)(e))

Section 3B decides when work is complete. If the contract does not say, completion is practical completion: the work is finished except for omissions or defects that do not stop it being reasonably capable of being used for its intended purpose.

The New South Wales Government says a builder or tradesperson must give you a written contract if the work costs more than $5,000 (including GST).

What the $20,000 Figure Actually Means

$20,000 is not a threshold for the warranties. It is the threshold for home building compensation insurance. Under section 92 of the Act and clause 53 of the Home Building Regulation 2014, a builder contracting to do residential building work priced over $20,000 (including GST) must have that cover in place and give you the certificate of insurance before asking for or taking any payment, including a deposit. The State Insurance Regulatory Authority says the certificate must also be given before the work starts, and that the cover is up to $340,000 (limits apply).

The same $20,000 figure (clause 11 of the Regulation) switches on the progress payment rules in section 8A, covered below.

Step 1: Put the Unfinished Items in Writing

Building Commission NSW’s guide to resolving building disputes says to raise the problem with the builder first, then confirm it in a letter or email setting out what is to be done and by when, dated, with a copy kept. Your written request should cover:

1. One numbered item per line. “Ensuite shower screen not installed” is an item. “Bathroom unfinished” is not.
2. The contract facts. Date signed, price, contract type, property address, and the completion date or period the contract gives.
3. Where the job is at. Still under construction, at or after handover, or stopped, and whether you received a practical completion notice.
4. A date for each item. For example, a written reply within 14 days giving a completion date for every numbered item.
5. Access. When the builder can come on site, on reasonable notice.
6. The next step. That if the items are not completed, you will contact Building Commission NSW.

Keep the tone flat and factual. This letter is likely to be attached to your complaint to Building Commission NSW, and later to an NCAT application, where a calm, numbered record reads far better than an angry one. Email it and keep a copy.

A request to finish the work is not a termination notice. If you want to end the contract, the termination clause in your contract sets out any notice it requires.

What You Have to Pay in the Meantime

Many homeowners ask whether they can simply stop paying. Your contract’s payment schedule sets what is due and when. For a contract over $20,000 (including GST), section 8A of the Home Building Act 1989 authorises a progress payment only if it is:

• a set amount or percentage of the contract price payable after a specified stage of the work is complete, with that stage described in clear and plain language, or
• a payment for labour and materials for work already performed or costs already incurred, supported by invoices, receipts or other documents, or
• a payment authorised by the regulations.

Under a stage-based contract, the payment for a stage falls due when that stage is complete. If a claim is for a stage that is not finished, put your position on it in writing and keep a record of what you have paid against the work done.

Step 2: Contact Building Commission NSW

If the builder does not finish the work, the next step is Building Commission NSW. Either you or the builder can ask it to assist, but both of you need to agree to the attempt at resolution.

Where there is a major defect, a Building Commission NSW inspector may visit the site and can issue a Rectification Order that lists the work to be rectified or completed and sets a date for it. Complaints that do not involve a major defect go through its issue resolution and advisory service. If a Rectification Order is not complied with, you can lodge a claim with NCAT.

Gather Your Evidence

NCAT’s home building page lists the information that is relevant to a home building application:

• correspondence or a Rectification Order issued by the regulator
• the building contract or agreement
• the certificate of insurance
• building reports
• the contractor’s licence details
• witness statements or affidavits

Add your payment records and dated photos of each unfinished item. You also need the builder’s correct legal name and address for service. If the builder is a company, NCAT asks you to search ASIC’s registers and attach the search to your application.

Step 3: Apply to NCAT

Home building cases are heard in NCAT’s Consumer and Commercial Division. NCAT can decide building claims of up to $500,000 (s 48K(1) of the Act). Its home building page says that before it can accept your application, all home building disputes must first be referred to the regulator, and you must attach evidence of that process unless your matter is exempt. The page, last updated 2 January 2026, still names NSW Fair Trading; the regulator is now Building Commission NSW.

The exempt matters NCAT lists include:

• claims where the time for lodging is due to expire within 3 months
• claims involving unlicensed contractors
• claims involving companies that have been deregistered
• claims against companies or individuals who have gone into administration, liquidation or bankruptcy
• appeals against a decision of a home building compensation insurer

You can apply online or on a PDF form. As at 1 July 2026, NCAT’s application fee for home building claims is $64 for a claim of not more than $10,000 (or no amount), $133 for a claim over $10,000 up to $30,000, and $344 for a claim of more than $30,000. Corporations pay double, and eligible pensioners and some others pay a reduced fee.

Home building matters are first listed for conciliation and hearing. If the case is not resolved at the first hearing, it may be listed for a contested hearing on a later date.

What Orders NCAT Can Make

NCAT says it can make orders in home building cases about:

• payment for home building work or services
• incomplete or defective home building work
• specialist work such as electrical, plumbing, gasfitting and air conditioning
• damage caused to other structures by home building work
• insurance claim appeals

Where a claim alleges defective work, section 48MA says the tribunal is to have regard to the principle that rectification by the party responsible is the preferred outcome.

Time Limits

Under section 18E, proceedings for a breach of a statutory warranty must be started within 6 years for a breach that results in a major defect and 2 years in any other case, running from completion. If the work is not completed, the period starts on the date the contract is terminated or, if it is not terminated, the date on which work under the contract ceased. If a breach becomes apparent in the last 6 months of the period, there is a further 6 months. NCAT has no jurisdiction over a warranty claim lodged after that period ends (s 48K(7)), and section 48K sets 3 year limits for some other building claims.

For unfinished work, that means the clock can start on the day the builder stopped turning up, not on a handover that never happened. Date your photos from the day the last tradesperson left.

What If the Builder Has Gone Bust?

If the builder is insolvent, has died or has disappeared, you may not be able to recover anything from them directly. For work priced over $20,000 (including GST), the builder should have held home building compensation cover, provided in New South Wales through the Home Building Compensation Fund (HBCF), managed by icare.

The New South Wales Government describes the fund as a last resort. You can claim if the builder has:

• died
• become insolvent
• disappeared
• had their licence suspended for not complying with a tribunal or court money order in your favour

Under section 99, the cover insures against loss from non-completion of the work because of the builder’s insolvency, death or disappearance. For incomplete work and lost deposits it runs for 12 months after the builder failed to start or stopped the work. Building Commission NSW says that if you become aware of incomplete or defective work, you must immediately notify your insurer in writing.

How Claim Done Helps

Claim Done is not a law firm. It drafts documents from your answers, and you decide what is sent.

The Unfinished Works Request costs a flat A$49. You give the stage of the build, the contract details and your list of unfinished items in your own words. The letter keeps your numbering, refers to your contract and practical completion, asks for a written reply with a date for each item (14 days to reply and 28 days to complete unless you choose other dates), offers access, cites section 18B of the Home Building Act 1989, and names Building Commission NSW as the next step. You approve it before it is emailed to the builder.

If nothing happens, the Building Dispute Pack costs A$97 for three documents: a notice of dispute to the builder, a complaint statement for Building Commission NSW, and a chronology and evidence schedule. You download them, send the notice and lodge the complaint yourself.

Final Checklist

• List every unfinished item, numbered, with where it is.
• Collect the contract, plans, variations, payment records, the certificate of insurance and the builder’s licence details.
• Take dated photos of each unfinished item.
• Send the builder a written request with a date for each item, and keep a copy.
• If the work is still not finished, contact Building Commission NSW.
• If the dispute is still not resolved, apply to NCAT with evidence of the Building Commission NSW process, inside the section 18E time limits.
• If the builder is insolvent, has died or has disappeared, notify the home building compensation insurer in writing straight away.

Facts checked on 29 September 2026 against the Home Building Act 1989 (New South Wales, version current from 10 June 2026: sections 3B, 8A, 18B, 18E, 48K, 48MA, 92 and 99), the Home Building Regulation 2014 (version current from 16 May 2025: clauses 11 and 53), Building Commission NSW’s resolving building disputes page (last updated 4 September 2026) and insurance requirements page, the State Insurance Regulatory Authority’s home building compensation page for homeowners (updated 19 December 2024), and NCAT’s home building page (last updated 2 January 2026) and fees page (fees as at 1 July 2026).

Start Your Unfinished Works Request

Write down every unfinished item, one per line, then start your Unfinished Works Request. It takes about five minutes to answer the questions, and you approve the letter before it is emailed to the builder. For other states, see the state-by-state guide. For a deposit paid for work that never happened, see the deposit recovery guide.

Frequently Asked Questions

Can I stop paying my builder if the job is not finished in New South Wales?

Your contract's payment schedule sets what is due and when. For a contract over $20,000 (including GST), section 8A of the Home Building Act 1989 authorises a progress payment only if it is a set amount or percentage payable after a clearly described stage is complete, a payment for labour and materials for work already performed or costs already incurred, or a payment the regulations allow. Under a stage-based contract, the payment for a stage falls due when that stage is complete. Put your position on any disputed claim in writing.

How long does a builder have to finish the work in New South Wales?

Section 18B(1)(d) of the Home Building Act 1989 implies a warranty that the work will be done with due diligence and within the time stipulated in the contract or, if no time is stipulated, within a reasonable time. Whether the builder is entitled to more time depends on the extension of time terms in your contract.

Do I need a notice to remedy breach before I go to NCAT?

The step NCAT requires is the regulator, not a notice to remedy. NCAT says all home building disputes must first be referred to the regulator, now Building Commission NSW, and evidence of that process attached to the application, unless the matter is exempt. If you want to end the contract, the termination clause in your contract sets out any notice it requires.

How much does it cost to apply to NCAT about a builder in New South Wales?

NCAT's fees as at 1 July 2026 for general consumer or commercial proceedings, which include home building, are $64 for a claim of not more than $10,000 (or no amount), $133 for a claim over $10,000 up to $30,000, and $344 for a claim of more than $30,000. Corporations pay double, and eligible pensioners and some others pay a reduced fee. NCAT says most people represent themselves.

What happens if the builder is insolvent, has died or has disappeared?

That is a claim on home building compensation cover, which is required for residential building work priced over $20,000 (including GST) and is provided in New South Wales through the Home Building Compensation Fund (HBCF), managed by icare. It is a last resort: you can claim if the builder has died, become insolvent or disappeared, or had their licence suspended for not complying with a tribunal or court money order in your favour. For incomplete work and lost deposits the cover runs for 12 months after the builder failed to start or stopped work. Building Commission NSW says to notify your insurer in writing as soon as you become aware of incomplete or defective work.

Do the statutory warranties only apply to jobs over $20,000?

No. The section 18B warranties are implied in every contract to do residential building work by a licensed contractor, or by a person required to hold a contractor licence, whatever the price. The $20,000 figure is the threshold for home building compensation insurance (and for the progress payment rules in section 8A), not for the warranties.

How long is a builder liable for their work in NSW?

Under section 18E of the Home Building Act 1989, proceedings for a breach of a statutory warranty must be started within 6 years for a breach that results in a major defect, or 2 years in any other case. The period starts on completion of the work. If the work was never completed, it starts on the date the contract was terminated or, if it was not terminated, the date work under the contract stopped (or, if work never started, the date of the contract). If the breach becomes apparent in the last 6 months of the period, you have a further 6 months.

Do I have to tell the builder about defects or unfinished work?

Yes. Section 18BA says that when a breach of a statutory warranty becomes apparent, you must make reasonable efforts to give the builder written notice of it within 6 months, and you must not unreasonably refuse the builder reasonable access to fix it. You also have a duty to mitigate your loss.