What happens to my build if the builder goes into liquidation?
Short answer
Once the liquidator is appointed, the company can't legally continue trading on your job. You become an unsecured creditor for any money already paid that wasn't yet completed work. You'll generally need to find a new builder to finish the job, on a new contract. If you have a Master Build, NZCB Halo, Stamford, or Builtin policy you should claim immediately. The unfinished work has to be checked by an LBP before you carry on.
Key facts
- Unsecured creditors usually recover cents in the dollar — and only after 12-24 months
- Your contract with the liquidated company is effectively terminated
- Any deposit money sitting in the company's bank account becomes part of the liquidation pool
- Master Build Guarantee and Halo have notification deadlines — sometimes 14 days
Immediate steps in the first 48 hours
Stop any pending payments. Don't approve new progress claims. Don't pay a 'rescue invoice' from anyone offering to finish — get it in writing on a separate contract instead.
Photograph the site, the materials on it, and any paperwork. If the company owns materials still on your site, the liquidator may try to claim them — having dated photos helps if a dispute arises.
Find the liquidator's name on the Companies Office. Their contact details will be there. Send them a written statement of what's been paid, what's been completed, and what you believe was theirs vs yours.
Your warranty might still cover it
Master Build Guarantee covers non-completion if the builder is a Registered Master Builder and the policy was issued — but coverage caps and excesses apply, and large deposits can void cover.
NZCB Halo, Stamford and Builtin work similarly. Each has its own conditions. The window to notify is usually short — read the policy the day you find out.
Finding a new builder mid-job
Most builders won't take over a half-finished job unless they've physically inspected it. The new builder will usually want an LBP to certify the structural work to date — that protects them from inheriting hidden defects.
Expect the takeover to cost more per metre than a fresh build of the same work. The new builder is pricing in unknowns.
Knowing the rules is half the job. The other half is knowing who you're hiring — check any NZ builder's court action, insolvency history, director track record and AI risk score in minutes.
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Related questions
Sources: Companies Act 1993; Registered Master Builders Federation — masterbuilder.org.nz; NZ Certified Builders — nzcb.nz. General information for NZ homeowners, not legal advice — building rules change and vary by council, so confirm critical details on the official source before acting. Last updated 2026-05.