Last Updated on 09/03/2026 by Damin Murdock
Licenced contractors must insure their building works pursuant to s 92 of the Home Building Act 1989 (NSW) (the “Act”). Nevertheless, there have been several disciplinary proceedings brought against licenced contractors who have failed to obtain sufficient insurance.
In the case of Pobjie v Commissioner for Fair Trading, Pobjie Agencies (“Pobjie”) was contracted to perform building works beyond the insured value. The Commissioner for Fair Trading suspended Pobjie’s licence and issued a notice to show cause calling on the director to show cause why he should not be disqualified from being a licence holder.
The director was unable to show cause and accordingly was disqualified from holding a licence for 10 years. The reasons given for the lengthy disqualification was because the director was aware that Pobjie did not have the necessary level of insurance, but still made the decision to perform works. This led to the adverse finding that he was not a fit and proper person to hold a licence under the Act.
The Administrative Decisions Tribunal noted that it has always regarded breaches of s 92 as a matter of great seriousness. The substantial public harm that may be suffered as a result of the lack of insurance required the director to be excluded from the home building industry for a significant period for the protection of the public.
Tips
- Do not agree to perform building works without first gaining the necessary level of insurance;
- If you do not have sufficient insurance but are still completing works, seek advice immediately as you may be able to rectify the problem.
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DISCLAIMER: This is not legal advice and is general information only. You should not rely upon the information contained in this article, and if you require specific legal advice, please contact us.
Damin Murdock (J.D | LL.M | BACS - Finance) is a seasoned commercial lawyer with over 17 years of experience, recognised as a trusted legal advisor and courtroom advocate who has built a formidable reputation for delivering strategic legal solutions across corporate, commercial, construction, and technology law. He has held senior leadership positions, including director of a national Australian law firm, principal lawyer of MurdockCheng Legal Practice, and Chief Legal Officer of Lawpath, Australia's largest legal technology platform. Throughout his career, Damin has personally advised more than 2,000 startups and SMEs, earning over 300 five-star reviews from satisfied clients who value his clear communication, commercial pragmatism, and in-depth legal knowledge. As an established legal thought leader, he has hosted over 100 webinars and legal videos that have attracted tens of thousands of views, reinforcing his trusted authority in both legal and business communities."
