WA Granny Flats - What Happens If Builder Becomes Insolvent?

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Active Member
20 July 2015
We signed a contract with Concept Steel Constructions in Perth for building a granny flat. Initially we signed for 80 working days, but with some other issues they sent us a variation for 200 working days, unfortunately we agreed for that with the situation we had at that time. 200 working days completed on 09/07/15. Lock up stage has now finished and the progress payment was made a month ago. They did not do any work for final stage – (installing kitchen and bathroom fittings). They gave us number of reasons for the delay such as suppliers’ delays and sub contractors not turning up.

Last Friday, I contacted the director over the phone, because they don't reply to emails. He said that company has cashflow issues and unable to pay for suppliers. He also said, they did not get money from other projects so at this stage he cannot say about a completion date. It looks like they are becoming insolvent (insolvency).

What can we do in this situation? I am very stressed and helpless, I have to pay the bank interest on the loan. This long delay wastes a lot of my money makes me mentally sick.

Why do we penalise someone else's cashflow issues? Can I terminate the contract? What is the legal situation? We had so many issues with this builder from the beginning. I am happy to continue with another builder.

Please help.


3 August 2015
This is not accurate information. I am a Director of Concept Steel Constructions and my Company is not insolvent. We have had issues with gaining access, a big dog at the premises attacking our contractors, which has caused many delays. This is also our last brick job, we build with EPS panel which is more energy efficient and goes up in a quarter of the time of brick construction. I have so few issues with my jobs that I know exactly what job this is.
Without naming people I suggest this post is removed.