Information for Aycon Constructions & Building Services Pty Ltd customers

Domestic Building Insurance (DBI), sometimes referred to as builder's warranty insurance, is mandatory insurance that protects homeowners against financial loss if the registered builder cannot complete the building project or rectify defective building work due to insolvency, death, or disappearance. It is required for all domestic building projects exceeding $16,000.

Learn more information on our Domestic Building Insurance page.

As it is illegal for a builder to carry out domestic building work without the required DBI in place, any building work still occurring must cease. Your building project has been paused because an investigation by the VBA has found Aycon has not obtained the required DBI for your build. DBI is required and protects you, the homeowner, from noncompliant building and plumbing work where the builder cannot complete the project or rectify defective work due to death, disappearance or insolvency. It is an offence for a builder to carry on domestic building work without the required insurance, and the immediate suspension of a builder automatically suspends all the builder’s building permits and the associated works in progress.

No. It is an offence for a builder to carry out domestic building work without DBI. When the VBA learns a builder is not covered by or has not taken out a valid DBI policy, we can start the disciplinary process and, if it is in the interests of the public, suspend their registration. The effects of suspension include being unable to work as a registered building practitioner and any building permits issued in the builder’s name are suspended.

The majority of DBI in Victoria is provided by the Victorian Managed Insurance Authority (VMIA). Homeowners can verify their VMIA insurance certificate on the VMIA policy verification tool. Homeowners who hold DBI policies with other providers, should verify their policy directly with them.

For consumers with open building permits and projects in progress with Aycon, the VBA is actively working alongside other government agencies to support those consumers. The VBA will assess the progress of your build and will arrange for a VBA inspector, together with your building surveyor, to visit your building site.

Consumers may, depending on their circumstances, need another builder to take over incomplete work. It is important for the VBA to assess the progress of building works underway with open permits. The VBA will arrange for one of its inspectors and the relevant building surveyor to visit the open permit building sites. The VBA will then contact the customer personally to discuss their circumstances and next steps.

While the immediate suspension of Aycon is in place, this builder will not be able to work on your building project. It is an offence for a builder to carry on domestic building work without DBI. Consumers can engage a new builder to complete their builder project, however, the relevant building surveyor will need to amend the current building permit to reflect the new builders details. Consumers will be required to enter into a new domestic building contract with their chosen builder to complete their building project.

Consumers can engage a new domestic builder to complete their builder project immediately, however, the relevant building surveyor will need to amend the current building permit to reflect the new builders details and the consumer will be required to enter into a new domestic building contract with their chosen builder.

DBDRV can help resolve disputes about defective or incomplete building work, delays, issues with payment and issues about the domestic building contract. They will assess an application and determine if it is suitable for its service. If the application is suitable, DBDRV will work with homeowners and the builder to try and reach a resolution which still complies with the registration status of Aycon.

If the application is not suitable or the homeowner and Aycon are unable to reach a resolution, parties can be issued with a Certificate of Conciliation allowing them to progress their dispute to the Victorian Civil and Administrative Tribunal (VCAT) if they wish.

If you are considering DBDRV’s service, you can find out more about the service and eligibility at the DBDRV website.

If a domestic building contract was worth $16,000 or more and Aycon took a deposit under that contract without taking out DBI, report this to the VBA. Tough new penalties for this illegal practice were introduced in February 2024.

Ask Aycon to return the deposit if they are still operating as a business. If they are not, this may be because they have gone into administration or liquidation. If this happens, you should take further steps .Consumer Affairs Victoria has more information on what you can do on their Domestic building insurance and insolvency page.

Building surveyors must check that builders have submitted a DBI certificate for the proposed building work, before issuing building permits. The surveyor must be satisfied that the named builder/building company on the building permit is identical to the named builder/building company on the major domestic building contract and the certificate of insurance from the insurer. In light of the alleged used of fraudulent insurance certificates, you may choose to verify certificates in the name of the Victorian Managed Insurance Authority (VMIA) at: buildvic.vic.gov.au/ClaimsPortal/s/verify-certificate

Customers of other builders should verify the certificate of insurance issued for their building project.

If the Victorian Managed Insurance Authority (VMIA) is the insurer, you can do this at buildvic.vic.gov.au/ClaimsPortal/s/verify-certificate.

If your builder did not obtain required DBI, report them to us.

Builders risk tough new penalties if they do the wrong thing.

Before signing a contract or accepting any payment (including deposits) for work over $16,000, builders should purchase DBI at buildvic.vic.gov.au/Login or from their chosen insurer.

We will continue to match data from VMIA with building permits to identify missing DBI.

The VBA appreciates this news is unexpected and upsetting for impacted homeowners. If you have any questions not covered by our online information, please contact us on 1300 815 127 or email customerservice@vba.vic.gov.au

Whether or not the occupancy permit can be issued without the defects being rectified first will be a matter for the relevant building surveyor (RBS). The RBS should be contacted and asked whether they are satisfied to issue an occupancy permit (OP). If they are not and further building work is deemed to be required, the consumer will need to engage a new builder to perform this.

This is an incorrect interpretation by the RBS. If a new builder has been organised and DBI has been secured for the remaining work (assuming it is above $16,000 in value), the RBS is able to issue an amended permit reflecting the new builder.

The question of whether the owner is permitted to sell their property knowing that there is no DBI covering the building work by Aycon is a matter they should get advice on from Consumer Affairs Victoria or from a lawyer.