A builder has been suspended over allegations he used fraudulent domestic building insurance certificates for renovations in Victoria.

Nathan Shanley, the nominee director of Shanley Constructions, has been issued a show cause notice and faces being disqualified for three years and fined $120,000 pending disciplinary action concerning projects in Port Fairy and Dennington.

On two occasions in the past year, he allegedly showed false or misleading domestic building insurance certificates to a surveyor, the Building and Plumbing Commission says. Permits for extension and alteration work were issued, and work was carried out without insurance in place.

The immediate suspension means Mr Shanley and Shanley Constructions are banned from any domestic building work.

Mr Shanley has applied for an internal review of the decision but remains suspended during this process.

He can also appeal to the Victorian Civil and Administrative Tribunal and make submissions to the BPC before a final disciplinary outcome is determined.

“DBI fraud is not only dishonest and illegal, it leaves consumers unprotected and the seriousness of this offence is reflected in the decision,” the commission’s CEO Anna Cronin said.

Builders in Victoria must have domestic building insurance for jobs worth more than $16,000. It protects consumers against incomplete or defective work by builders who die, disappear or become insolvent. 

An earlier version of this story stated Mr Shanley had already been disqualified for three years and fined. It has been corrected to show the final disciplinary outcome is yet to be determined.