Contractor Didn’t Finish the Job in Australia? Notice to Remedy Breach

You hired a contractor. They started the work, maybe got 30%, 50%, 70% of the way through. Then they stopped showing up, stopped returning calls, or keep promising to come back while you have already paid most of the money. The job sits half-done.

The short answer: under the Australian Consumer Law, a service must be provided with due care and skill, and within a reasonable time if no time was agreed. Put the unfinished items and a deadline in writing, usually in a formal Notice to Remedy Breach. Check your contract’s termination clause before you end the contract. If that doesn’t work, use your state’s building regulator (for home building work) and then your state’s tribunal or court.

What the law says

The Australian Consumer Law gives consumers automatic rights called consumer guarantees. For services, the ACCC says a consumer has the right to expect that the service is:

• provided with due care and skill
• fit for a particular purpose you made known to the business, and
• provided within a reasonable time, when no time was agreed.

These rights can’t be taken away by anything a business says or does. They cover services normally bought for personal or household use, and services bought for a business that cost less than $100,000 including GST.

A contractor who has stopped partway through has, at the least, not finished the job within a reasonable time. Whether that is a “major” or a “minor” problem matters, because it changes what you can ask for.

Major problem: cancel and get money back

The ACCC says a service has a major problem when it creates an unsafe situation; has one serious problem, or several smaller ones, that would have stopped you buying it if you had known; or doesn’t do its job or achieve a result you told the business about, and can’t easily be fixed within a reasonable time. With a major problem you can choose to:

• cancel the contract and get a refund (this may not be a full refund, because you may need to pay a reasonable amount for work done properly so far), or
• keep the contract and pay a lower price that takes the problem into account.

If you paid upfront, you have the right to get some money back. How much depends on what was actually provided.

Minor problem: they must fix it, and if they won’t

For a minor problem, the business must fix it for free. If it can’t or won’t fix the problem within a reasonable time, the ACCC says you can have it done somewhere else and get the business to pay you back the reasonable cost, or cancel the service contract and be compensated for the drop in value caused by the problem.

If it is home building work, state law adds more

Building and renovation work on a home is also covered by state and territory home building laws, which add statutory warranties and their own dispute process. In New South Wales, for example, section 18B of the Home Building Act 1989 implies a warranty in every contract to do residential building work 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. Our guide to a builder who didn’t finish the job in NSW walks through that process step by step.

In several states the tribunal will not hear a home building dispute until you have been through the building regulator first:

For South Australia, Tasmania, the ACT and the Northern Territory, and for what to do if the builder has gone broke, see the state-by-state table in our guide to getting your deposit back when a contractor walks off the job.

Step by step

1. Read your contract. Find the completion date or timeframe, the payment schedule, any extension of time clause and the termination clause, including any notice it requires before you can end the contract.
2. Record where the job is at. List every unfinished item, take dated photos, and add up what you have paid against the work actually done. Keep every text, email and invoice.
3. Put it in writing, with a deadline. Send a formal notice that identifies the contract, the work outstanding, the guarantee or term that has not been met, what you want done and a reasonable deadline. Say what you intend to do if the deadline passes, and only mention steps you are prepared to take.
4. Use the regulator if it is home building work. In New South Wales, Victoria and Queensland this is required before the tribunal, as the table above shows.
5. Get quotes to finish. Two written quotes from other contractors show what it will cost to complete the work, which helps you work out what to claim.
6. Claim the difference. If the work still isn’t done, send a final demand for the extra cost of finishing (or a refund for work not done), then apply to your state’s tribunal or court.

Why a Notice to Remedy Breach is a sensible opening move

For incomplete work, a Notice to Remedy Breach does more than a general complaint because it:

• identifies the specific breach (the work not completed, the timeline missed, the guarantees not met)
• asks for completion within a clear timeframe you choose, often 14 to 28 days
• states what you will do if the deadline is missed, such as ending the contract under its terms and claiming the cost of having another contractor finish, or a refund of amounts paid beyond the value of the work actually done
• creates a dated record you can show a regulator, tribunal or court.

What the Notice covers

• The contract (date, scope, price, payments made)
• The work completed vs the work outstanding
• The specific breach (timeline, scope, quality)
• The remedy you want (complete the work) and the deadline
• What you will do if the deadline is not met
• Reference to the relevant ACL provisions and any state licensing scheme

What if they still do not finish

If the deadline passes without completion, the next steps:

• Get two quotes from other contractors to complete the work
• End the contract in the way your contract allows, then engage a replacement contractor to finish
• Send a Final Demand ($49) for the cost difference plus a refund of any overpayment
• If still unpaid, lodge a Tribunal Application ($97) with your state’s tribunal or court (the right one depends on your state and the type of work)
• If the contractor is licensed (builder, electrician, plumber), make a complaint to the licensing authority as well

Mistakes to avoid

• Relying on phone calls. Follow every call with an email that confirms what was said and agreed.
• Ending the contract on the spot. Check the termination clause and any notice it requires first. Getting this step wrong can give the contractor a claim against you.
• Paying ahead of the work. Check each payment claim against the work actually done before you pay more.
• Waiting too long. Home building laws set time limits for warranty claims, and home warranty insurance schemes can have short notice periods.

Frequently asked questions

How long does a contractor have to finish the job?

Whatever time your contract sets. If it sets no time, the Australian Consumer Law guarantee is that the service will be supplied within a reasonable time. For residential building work in New South Wales, the section 18B warranty says the same: within the time in the contract, or a reasonable time if none is stipulated.

Can I get my money back if the contractor didn’t finish?

If it is a major problem, the ACCC says you can cancel and get a refund, although you may need to pay a reasonable amount for work already done properly. If you paid upfront, you have the right to get some money back, and how much depends on what was actually provided.

Can I hire someone else to finish and make the first contractor pay?

Where the business can’t or won’t fix a problem within a reasonable time, the ACCC says you can have it done elsewhere and recover the reasonable cost. Check your contract’s termination clause before you bring in someone else, and keep the quotes and invoices.

Do I have to go to the building regulator before the tribunal?

For home building disputes in New South Wales, Victoria and Queensland, yes, unless an exemption applies (see the table above). In Western Australia, you must give the builder at least 14 days’ notice before complaining to the Building Commissioner.

What if the contractor has gone broke or disappeared?

For home building work, check whether the job was covered by home warranty insurance (each state has its own scheme and name for it). Our deposit guide lists each state’s scheme and its deadlines.

The flat fee

The wizard asks about the contract, what is done, what is outstanding, the deadline you want, and the trade or industry. Our Programmatic Algorithms draft the notice citing the Australian Consumer Law and the relevant state licensing scheme. Flat fee of $49, and you approve it before it is sent.

Next step

Don’t wait for the contractor to come back of their own accord. Time limits apply, and a dated written notice keeps your options open. Send the formal notice now.