Aycon Constructions & Building Services has been slapped with a substantial $250,000 fine and a three-year suspension, following an in-depth investigation by the Victorian Building Authority (VBA). The investigation uncovered that Aycon had failed to secure Domestic Building Insurance (DBI) for several projects and had used multiple fraudulent DBI certificates for significant domestic building contracts and permits.
The VBA’s probe underscores the crucial role of valid DBI policies for both consumers and construction professionals, especially in light of recent high-profile builder collapses like Porter Davis. According to regulations, builders must obtain DBI for any domestic work exceeding $16,000 and under three storeys. Building surveyors are mandated to ensure that DBI insurance is in place and that the builder’s name on the insurance certificate matches that on the building contract before issuing permits.
In response to the fraudulent certificates, both building surveyors and homeowners are advised to take extra precautions to verify the authenticity of DBI certificates. This can include cross-checking with the issuing body or using QR codes and watermark protections provided by VMIA.
With a high rate of builder insolvencies, DBI insurance acts as a crucial safety net for consumers. It is increasingly important for homeowners and building professionals to verify that insurance policies are genuine and comply with legal requirements. This case serves as a stark reminder that cutting corners on insurance can lead to severe regulatory penalties, loss of consumer trust, and significant damage to a company’s reputation.
