What happens with the warranty if the GF company that built your GF goes bankrupt?

Hi!
I want to build a GF and comparing quotes, one of the companies mentioned that some of their competitors may go bankrupt soon because they don't pay their builders for some time.

This could be just pure sales strategy or may be potentially true.

In the case it's true, is there any protection for me as consumer, if you build a GF with a company, then the company is gone (let's say 2 years later) and you are having structural issues 4 years after the GF was completed?

Or there is any way to mitigate the risk of choosing a GF company that may be gone, just after a few years after they built your GF?

Thanks

 

It is compulsory for the builder to effect home builders warranty insurance on all contracts over $22k.

If they're not honouring the warranty you can claim with fair trading.

 

FROM QBE
If you’re a licensed builder you may need Builders Warranty insurance for some, or all, of your residential jobs. Builders Warranty protects your customer if they lose their deposit, you don’t finish the job or it’s defective, and you die, disappear or become bankrupt.

The rules vary from state to state but in many places it’s a legal/statutory requirement for jobs above specified dollar amounts. To find out more select your state below.

If you’re an owner builder looking to sell your home, you may need Owner Builder Warranty.

IN NSW, known as the Home Building Compensation Fund, it is managed by icare.
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Councils generally collect/impose premiums as part of the approval process for construction approvals. They are the gatekeepers to ensure only licensed and insured builders get construction approval but its the owners concern to check the policy is current prior to each payment.

 

As a building company in Sydney. For every project we undertake over $20,000 in labour and material it is mandatory to submit home warranty to the owner/client.
This covers you for 7 years and in case of any issues you are covered through the insurance.
Your first point of contact will be the builder and then if nothing is done about it you are covered through the insuring company