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Builder gone bust. Do this first

A builder insolvency mid-build is horrible and survivable, and the first week decides most of what you get back. Verify it on Companies House, stop payments until you have advice, secure the site and your materials, and check card and finance protection before writing anything off.

The first week, in order

  • 1. Verify on Companies House. Free and definitive. Not answering is not the same as not existing.
  • 2. Freeze payments. Nothing moves until you know who is entitled to what; money into an insolvent company is money into the creditors\u2019 pot.
  • 3. Secure the site and paid materials. Photograph the state of the work, dated, and keep delivered materials you have paid for on your property.
  • 4. Check every protection. Credit card (Section 75), debit card chargeback, finance agreements, insurance-backed guarantees, structural warranties.
  • 5. Re-quote the remaining work. Three itemised quotes for completion, judged against an independent range, so the rescue does not become the second accident.

For that last step: the cost calculator gives the fair range and the quote check the verdict per quote. Still trading but not turning up? That is the delays route.

Frequently asked questions

How do I check whether the firm has really gone under?

Look the company up on Companies House (free): liquidation, administration and strike-off actions appear there. A builder who has stopped answering is a delays problem; a company in liquidation is an insolvency problem, and the two routes are different. Verify before you act.

I paid a deposit by credit card. Is it protected?

Possibly, and this is the first thing to check. Under Section 75 of the Consumer Credit Act 1974, your card provider is jointly liable for breaches on purchases over £100 and up to £30,000 paid (even partly) by credit card. Debit card payments sometimes qualify for a chargeback instead. Call your card provider before you write anything off.

Should I pay the outstanding invoice?

Not before you have advice. Money paid to an insolvent company joins the pot for all creditors; you rarely see it again, and it does not buy the completion of your build. If a liquidator or administrator is appointed, deal with them in writing.

Do subcontractors have a claim on me?

Usually their contract is with the builder, not with you, and paying them directly without advice risks paying twice for the same work. Be sympathetic, take names, and check with Citizens Advice or a solicitor before any money moves.

What about the insurance-backed guarantee?

If your builder sold the job with an insurance-backed guarantee or a structural warranty, this is precisely the event it exists for: the insurer stands behind the work when the firm no longer can. Find the certificate and claim early; and for the difference between paper promises and insured ones, see the guarantees guide.