Builder issued stop work order for alleged insurance failures on 200-plus projects

An investigation by the building authority indicates that more than 200 building projects may have been conducted by Aycon between 2018 and 2024 without domestic building insurance.

Those affected have home builds in various stages of construction through to completion and occupancy.

Moreover, the VBA believes that Aycon forged insurance certificates that were provided to home owners engaging the firm’s services in some instances.

Due to the VBA’s order, all work on Aycon building projects must immediately cease.

Affected Aycon clients have been contacted by the building authority, while the body acknowledged that the news will be distressing for many.

While the VBA and Victoria’s Consumer Affairs Department believe that Aycon’s alleged actions are an isolated incident, they are nonetheless encouraging Victorians to confirm their domestic building insurance directly with the relevant insurer. Consumers who have certificates issued by the Victorian Managed Insurance Authority (VMIA) can verify them via the VMIA policy verification tool.

As the matter proceeds, VBA’s commissioner and CEO, Anna Cronin, assured consumers that the body would “use its full range of enforcement powers to protect consumers against potential harms caused by unprofessional conduct and non-compliant building work”.

“If a domestic building insurance policy is not in place, it is not only an offence under the Building Act, but exposes home owners to potentially significant financial and emotional turmoil,” she acknowledged.

“We will hold those who do the wrong thing to account and do all we can to remove them from the building industry,” Cronin said.