A Victorian builder faces 15 charges relating to domestic building insurance law breaches.

Glenvill Constructions demanded or received payments under major home building contracts without ensuring the work was covered by the required insurance, the state’s Building and Plumbing Commission alleges.

Although the builder later obtained policies, no coverage was in place when payments were collected, and for up to 90 days afterwards in some cases, according to the regulator.

Individual builders found guilty of domestic building insurance breaches could face penalties of up to $96,000; companies may incur penalties up to $480,000.

The commission says the breaches were found in a broader insurance audit of builders following the collapse of Porter Davis in 2023 – the largest builder insolvency in the state’s history.

Mandatory DBI polices provide protection against incomplete or defective work by a builder that has died, disappeared or become insolvent.

Coverage will be expanded to builders refusing to fix defective work, under reforms to be implemented at the end of the year.