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If your building contractor enters administration, the company’s administrator takes control of its affairs. Your project may be paused, continued, sold to another business or brought to an end; administration does not guarantee that the work will be completed or that your deposit will be refunded. You must deal separately with the administrator, your payment provider, any warranty or insurer, and whoever is responsible for making the site safe.
The practical response is to identify the exact contracting entity, obtain the administrator’s details, preserve the contract and site evidence, ask whether your project will continue, register any insolvency claim, investigate card-payment protection and warranties, and secure dangerous unfinished work. The result depends on the company’s legal structure, your contract, what you paid and how you paid it, the project’s condition, and which UK nation’s consumer rules apply.
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What administration means for a building project
Administration is a formal insolvency process for a company. An administrator takes charge and must pursue the statutory purpose of the administration. That may involve rescuing the company, selling its business or assets, trading for a period, or ending the administration in another permitted way. The process is not a promise that every customer contract will be honoured.
For a domestic project, the administrator has to assess the company’s position and the contracts it has. The administrator may decide that continuing a particular job is commercially or legally possible, but may also stop work, transfer assets or contracts, or decline to spend more company money on an unfinished house. Government material about administrator choices for project companies describes powers to trade, sell and decide whether contracts continue; that material concerns PFI projects and is not a determination of your domestic contract rights.
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The Insolvency Service says the administrator must make a statement of proposals as soon as practicable and before the end of eight weeks after the company enters administration. That is a deadline for proposals, not a forecast for completing your extension, roof or renovation. Ask the administrator what has been decided about your project and when further information will be issued.
First establish who contracted with you
A trading name on a van or quotation may not be the legal name that signed your agreement. Your recovery options and the register you search depend on whether you dealt with a limited company, sole trader or partnership.
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1Scan for outdated or missing drivers - takes under a minute2Clear out junk files and repair common Windows errors3Fix the driver behind crashes, sound loss and screen glitches| Business form | Where to check status | Why it matters |
|---|---|---|
| Limited company | Companies House | The registered company, rather than a trading style, is normally the party in the contract and the entity in administration. |
| Sole trader or partnership | The Insolvency Register, as directed by Citizens Advice | An individual or partners may be responsible under the agreement; company-administration procedures do not automatically describe their position. |
| Unclear or mixed arrangements | Check the quotation, invoice, bank details, terms and correspondence, then obtain advice if necessary. | You need the correct debtor and the correct procedure before making a claim or serving notice. |
Register information can take time to appear. Save a copy of the entry, note the date you checked it and look for the administrator’s appointment notice and contact details. Use the administrator’s stated address or online claim process rather than continuing to send demands to a former project manager who no longer controls the company.
Ask whether your contract and site will continue
Contact the administrator in writing with your project address, contract reference, the amount paid and the work still outstanding. Ask focused questions:
- Has the administrator reviewed or adopted this contract?
- Will anyone return to site, and under whose authority?
- Who currently controls the keys, scaffolding, temporary works, materials and drawings?
- Should you stop payments, and where should any properly authorised payment be made?
- How should defects, variations and completion evidence be recorded?
- Is the administrator inviting a claim, and what is the deadline or form?
Do not assume silence means abandonment, and do not assume a promise by a subcontractor or salesperson binds the company in administration. Check the written contract for suspension, termination, notice, payment, retention-of-title, access and dispute clauses before removing materials or appointing someone else. Taking a consequential step without advice can affect claims, set-off arguments or ownership of items stored on site.
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Build a complete evidence file before disturbing the work
Your position is much easier to assess if you can show what was promised, what was paid and what exists. Keep the signed quotation or contract, specifications, drawings, schedules, variations, invoices, receipts, bank and card statements, and every relevant email or message. Citizens Advice notes that an oral agreement can still form a domestic home-improvement contract in England, so write down what was agreed while memories are fresh and preserve witness details.
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Photograph and, where useful, video every room and external area. Record the date, location and issue for each image. Make a simple schedule showing:
- work completed and apparently satisfactory;
- work incomplete, inaccessible or needing testing;
- defective or damaged work, including visible water ingress or movement;
- materials delivered, materials paid for but not delivered, and items belonging to others;
- payments made, credits due and sums demanded after work stopped; and
- dates of site visits, missed appointments and messages.
Do not conceal defects by stripping out work unless an urgent safety measure requires it. If a new professional must open up the work, ask for dated photographs, notes and a reasoned description of what was found. That record can support an administrator claim, a payment-provider request, an insurer notification or a later contractual assessment.
Register what the insolvent business owes you
If you paid for work that was not supplied, or must spend money correcting defective work, you may be a creditor. Follow the administrator’s instructions to submit a proof of debt or other creditor claim. State the contract price, payments made, value of work received, reasonable completion or rectification costs if established, and any other amount you are claiming. Attach the evidence requested and keep proof of submission.
An accepted claim does not mean money will be paid. Insolvency distributions follow statutory priorities, and Citizens Advice warns that other creditors, including banks, may be paid before customers. The estate may have insufficient funds, so the eventual dividend could be small or nil. A claim against the company is also distinct from a claim against a card provider, insurer or warranty company; pursuing one does not automatically replace the others.
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Do not state an unverified completion bill as a final loss. If the work has not yet been independently priced, identify the figure as an estimate and update it when you have a suitable quotation or survey. Keep the administrator informed of material changes.
Check card-payment protection immediately
Ask the card issuer or finance provider what protection applies to the transaction. Depending on the payment chain and the contract, Section 75 may cover a qualifying credit-card or buy-now-pay-later transaction where the cash price of the item or service is over £100. Citizens Advice says debit-card payments cannot use Section 75. Section 75 eligibility is fact-specific, including the amount, who contracted with whom and how the payment was processed.
For debit cards and some other transactions, ask the bank about chargeback. Chargeback is a card-scheme process rather than the same statutory right as Section 75; availability, evidence and time limits depend on the scheme and issuer. Contact the provider promptly, explain that the contractor entered administration, and supply the contract, statement showing the payment, administrator notice, photographs and a clear account of what was not supplied. Ask for the provider’s current deadline and keep the case reference.
Do not wait for an insolvency distribution before making a payment-provider enquiry. These routes run on different rules and timetables. Conversely, do not describe an uncertain technical defect as proven fraud or misrepresentation; give the provider an accurate chronology.
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Read the workmanship guarantee, insurance-backed warranty, latent-defects policy and any policy schedule. The guarantee may be issued by a separate insurer or warranty administrator and may have notification deadlines, approved-contractor requirements, exclusions and an excess. Contact the named provider directly and ask whether contractor insolvency is a covered event and what inspection evidence it requires.
Also notify relevant home or buildings insurance if the unfinished condition creates an insured risk, such as water damage. Do not assume ordinary home insurance pays for the cost of completing a contract or correcting poor workmanship; the policy wording controls. Citizens Advice suggests asking the administrator about repairs and trying an applicable guarantee or warranty, while warning that the chance of the administrator arranging repairs may be small.
Citizens Advice Wales recommends obtaining clear contact details, written remedial arrangements and insurance information before building work starts. If you have those documents, include them in the notification. If you do not, the absence of a warranty document does not by itself prove that no cover exists, so check the contractor’s paperwork and payment records.
Make the site safe before deciding who finishes it
Unfinished construction can present immediate hazards: exposed wiring, open excavations, unsupported structures, incomplete roofs, gas or water services, unstable walls, unsecured scaffolding, dust or asbestos-containing materials. Keep children, visitors and unqualified workers away. If there is an immediate danger, leave the area and contact the appropriate emergency service. Citizens Advice advises reporting a dangerous building or structure to the local council.
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Before another trade enters, identify who is acting as contractor or principal contractor, who will control site induction and welfare, and who will coordinate risks. A new builder should inspect temporary works and services rather than relying on assurances from the failed contractor. Keep a written handover of hazards, isolation points, permits and outstanding inspections.
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Can another builder finish the job?
Usually, you can seek quotations from other builders, but administration does not appoint a replacement automatically. First check whether the administrator claims control of the contract or site and whether the contract sets a notice or termination procedure. Clarify who owns unfixed materials and who may remove plant, scaffolding or tools. If ownership is disputed, obtain advice before moving anything.
Ask at least one suitably qualified professional to inspect the work and separate three issues:
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| Question | Evidence to obtain | Decision it supports |
|---|---|---|
| What is safe and usable now? | Condition survey, photographs, service tests and structural observations | Immediate protection and whether work can restart. |
| What remains to be built? | Original scope, approved variations, drawings and a measured schedule | A comparable completion quotation. |
| What is defective? | Independent inspection, test results and an itemised remedial estimate | Potential claim value and repair sequence. |
| What will completion cost? | Written quotation stating assumptions, exclusions, programme and VAT treatment | Funding and a realistic loss calculation. |
A replacement quotation is evidence of prospective cost, not proof that the insolvent company’s estate owes that entire amount. If the contract is substantial or technically disputed, use an independent building surveyor, contract administrator or solicitor with construction and insolvency experience.
How to choose the next step
| Your immediate objective | Primary route | Important limitation |
|---|---|---|
| Find out what will happen to the contract | Write to the administrator and review the contract | No obligation to continue domestic work is established merely by the appointment. |
| Recover money paid to the failed business | Submit an insolvency claim | There may be no distribution after higher-priority claims. |
| Recover a qualifying card payment | Ask the credit-card or BNPL provider about Section 75 | Eligibility depends on transaction value and payment chain; debit cards do not use Section 75. |
| Explore debit-card recovery | Ask the bank about chargeback promptly | Scheme rules and deadlines vary and recovery is not guaranteed. |
| Pay for completion or repairs | Obtain an independent inspection and written quotations | Cost does not automatically become an accepted insolvency claim. |
| Protect people and property | Isolate hazards, contact the council or emergency services, and appoint competent site control | Safety action should not wait for the insolvency timetable. |
Common mistakes to avoid
- Assuming the administrator is your new project manager. The administrator’s statutory role is to deal with the company’s affairs, not to guarantee domestic completion.
- Claiming against the wrong name. Match the legal entity on the contract and register entry, not just the trading name.
- Throwing away paperwork. Keep originals and exports of messages, statements and images in more than one secure location.
- Paying an individual informally to “finish it.” Use a written scope, identify the contracting business, verify insurance and agree site-safety responsibilities.
- Removing materials without checking ownership. Retention-of-title terms, subcontractor rights and the administrator’s control may affect what can be moved.
- Waiting to report a dangerous condition. Safety and weather protection are practical priorities even while financial claims are unresolved.
- Treating a new quotation as the final loss. Separate estimated completion cost from verified defective-work and contract claims.
When professional advice is justified
Independent advice is particularly valuable where the deposit or completion cost is substantial, the contract contains unusual termination or payment terms, several contractors share the site, structural or service defects are suspected, or the administrator disputes your claim. A construction solicitor can examine notice, termination, set-off, ownership and insolvency issues. A building surveyor or contract administrator can document condition, test work and define a completion scope. These services cost money and do not guarantee recovery, but a clear technical and contractual record can prevent an avoidable safety or claim error.
Rules and procedures differ across England, Wales, Scotland and Northern Ireland. The Citizens Advice building-work guidance cited here is England-specific; check the relevant nation’s consumer and building-safety guidance for your address. CDM 2015 guidance from the Health and Safety Executive is framed around the UK regulations it administers, but the people controlling your particular site still need to reassess their duties when the contractor changes.
A practical checklist for the next 48 hours
- Photograph the site, protect it from weather and keep people away from hazards.
- Find the legal name and business form on your contract, invoice or bank record.
- Check the appropriate public register and save the administrator’s contact details.
- Send one factual written enquiry asking about contract status, access, materials, safety and the claims process.
- Back up the contract, variations, receipts, statements, messages, photographs and diary.
- Notify the credit-card, BNPL or debit-card provider and ask about Section 75 or chargeback eligibility and deadlines.
- Notify any warranty, guarantee or insurer named in your documents.
- Do not terminate, remove materials or appoint a replacement without checking the contract and ownership position where the consequences are significant.
- Arrange a competent inspection and written completion or remedial quotations if work will not continue.
- Submit and update your insolvency claim using the administrator’s required form and evidence.
The key distinction is between securing the site, documenting your loss and seeking money. Administration may affect all three, but no single step replaces the others. Keep the records, meet each provider’s deadline and obtain case-specific advice before a major contractual or technical decision.
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