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A builder you work for is in liquidation: what to do
When a head contractor is placed into external administration, the subbies who move first are usually in the best position. This is general information, not legal advice — but here are the steps that commonly matter, and the order they matter in.
1. Confirm what's actually happened
"Going under" can mean several different formal events: a voluntary administrator appointed, a liquidator appointed (voluntary or by the court), or a receiver appointed by a secured creditor. Each has different consequences. The formal event is published on the ASIC Published Notices register against the company's ACN, usually naming the appointee (the administrator, liquidator or receiver). Get the notice and the appointee's contact details.
2. Stop and take stock before you keep working
Continuing to supply labour or materials after an appointment is a decision worth pausing on. Work done after the appointment is treated differently from debts owed before it. Speak to the appointee about whether they want work to continue and on what terms before you commit more of your time or gear.
3. Secure your tools, plant and materials
Identify anything on site that belongs to you — tools, plant, or materials you've supplied but haven't been paid for. Retention-of-title and hire arrangements can be relevant here. Document what's yours with photos and paperwork and raise it with the appointee promptly rather than removing items unilaterally.
4. Lodge your claim with the appointee
As an unsecured creditor you'll generally be invited to lodge a proof of debt with the liquidator or administrator. Pull together your contract, signed variations, delivery dockets, invoices and any payment claims or schedules. Good records lodged early make the process smoother.
5. Know the Queensland security-of-payment tools exist
Queensland subcontractors have specific statutory mechanisms that may be relevant — including the Building Industry Fairness (Security of Payment) Act 2017, subcontractors' charges, and project trust account arrangements on some projects. Whether and how these apply depends on your circumstances and timing, so this is exactly the point to get your own advice from a construction lawyer or your industry association.
6. Learn the timing lesson for next time
Almost every subbie who's been burnt says the same thing: they wish they'd known sooner. The days right after an appointment are when the useful moves happen — stopping supply, securing gear, lodging early. Subbie Watch exists to buy you those days by alerting you within the hour of a formal notice being published for a builder on your list.
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Frequently asked questions
Should I keep working after a liquidator is appointed?
That's a decision to make carefully and ideally after speaking with the appointee, because work done after the appointment is treated differently from money owed before it. Consider getting your own advice.
How do I claim money I'm owed?
You'll generally lodge a proof of debt with the administrator or liquidator, supported by your contract, variations, dockets and invoices. The appointee's details appear on the published notice.
How would I find out a builder was placed in liquidation?
Formal appointments are published on the ASIC Published Notices register. Subbie Watch monitors that register and alerts you within the hour for builders on your watchlist.