What happens if my builder goes bust mid-job?

If your builder becomes insolvent, work stops and you become one of their creditors. Stop any further payments, secure the site, and document the state of the work and what you have paid. You may recover some money through a Section 75 claim (if you paid by credit card), a deposit protection scheme, or as a creditor in the insolvency, though unsecured creditors often recover little. Then get the remaining work re-quoted.

Can I get my money back if a builder goes into liquidation?

It depends how you paid. If you paid a deposit or instalment by credit card and the amount is between £100 and £30,000, a Section 75 claim against your card provider is often the strongest route. If you paid by debit card, a chargeback may help. As an unsecured creditor in the liquidation you can submit a claim, but recovery is usually small and slow. Document everything to support any claim.

Should I keep paying a builder who looks like they are struggling?

No. If you suspect a builder is in financial trouble, do not make further payments ahead of work done, and never pay a large sum upfront to 'help them buy materials'. Paying ahead increases what you lose if they fail. Pay only for work actually completed, hold any retention, and keep records. This is exactly why stage payments tied to milestones protect you.

How do I find a new builder to finish the job?

Get the remaining work properly scoped first, ideally with photos and a list of what is done and what is outstanding, then get at least two or three quotes to complete it. Finishing another builder's half-done work carries risk, so expect a fair premium, and check the new builder's quote covers putting right anything that was done badly, not just carrying on from where the last one stopped.

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Builder Gone Bust Mid-Job? What to Do First and What You Can Recover

If your builder has gone bust mid-job, act fast: secure the site, stop payments, document everything, and check your recovery routes including Section 75. Here is the order to do it in.

15 June 20268 min readBy Rich, Founder

Having a builder go bust partway through your project is one of the worst situations a homeowner can face: the site is a mess, money is gone, and the pressure to "just get someone in to finish it" can lead to a second expensive mistake. The right response is to slow down for a day, secure your position, and work through the recovery routes in order. Here is what to do.

Do these first

What To Do

In the first 24 to 48 hours: 1) Stop all further payments immediately. Do not pay anyone claiming to be owed money by the builder. 2) Secure the site, make it safe and weathertight, and protect any materials you have paid for. 3) Document everything: photograph the state of the work, gather your contract, quotes, invoices, and proof of every payment. 4) Get written confirmation of the insolvency if you can. These steps protect both your safety and any future claim.

Acting calmly here is what preserves your options. Paying out in a panic, or letting the half-finished work deteriorate, makes everything harder.

Where your money might come back

There is rarely one clean answer, so work through the routes you have.

Section 75 (credit card): if you paid a deposit or instalment by credit card, and the amount of the purchase is between £100 and £30,000, you can often claim against your card provider, who is jointly liable. This is frequently the strongest route.
Chargeback (debit card): if you paid by debit card, ask your bank about a chargeback. It is less powerful than Section 75 but worth pursuing.
Deposit protection: if the builder was part of a scheme with deposit or insurance-backed guarantees, claim under it.
Insolvency claim: you can register as a creditor in the liquidation, but as an unsecured creditor you usually recover little, and slowly.

What To Do

The harsh reality: as an unsecured creditor you are near the back of the queue, so the insolvency itself rarely returns much. The card-based routes (Section 75 and chargeback) are usually where homeowners actually recover money, which is one more reason to pay deposits and stages by credit card rather than bank transfer.

Why this happens, and how to avoid it next time

Most of the loss in these situations is money paid ahead of work done. A large upfront deposit, or stage payments that run ahead of progress, is exactly what is exposed when a builder fails. This is the single biggest argument for the payment discipline we cover in stage payments and retention and why a 50% deposit is such a red flag.

The warning signs of a struggling builder often show earlier, too: not turning up, asking for money ahead of schedule, or pushing to buy materials upfront. Our guides on a builder who has not started work and avoiding cowboy builders cover spotting trouble early.

Getting the job finished

Once your position is secured, the job still needs completing. This is its own risk, because finishing someone else's half-done work is harder than starting fresh.

Get the outstanding work scoped properly, with photos and a clear list of done vs outstanding.
Get two or three quotes to complete it.
Expect a fair premium: a new builder is taking on unknown work and unknown quality.
Make sure the new quote covers putting right anything done badly, not just carrying on.

This is the moment a quote check earns its keep. You are choosing a new builder under stress, fast, with money already lost, which is precisely when an overpriced or incomplete quote slips through.

Check the quote to finish the job

Before you hand the remaining work to a new builder, upload their quote and we check it against real benchmarks, flag missing items and remedial work, and help you avoid a second costly mistake on top of the first. It takes under a minute, and it could not matter more than it does right now.

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