The Australian dream involves living in a sprawling home one can proudly call their own.

These places are supposed to be a haven for everyone.

However, homeowners have been wary of their safety, especially those who bought property built by a massive home builder.

The collapse of a long-standing builder, J&CG Constructions, has rocked the Australian construction industry.

The company has since faced $12.9 million in customer claims over alleged building defects.

For many homeowners, this news became a wake-up call about the risks lurking behind a brand-new home.

J&CG Constructions received several one-star reviews for their construction services. Image Credit: Google Maps

J&CG Constructions is a family-run business established in 1994.

The construction firm built a reputation over three decades for constructing apartment complexes, offices, and commercial spaces across Sydney.

However, last May, the company was forced into voluntary administration.

J&CG Constructions could not withstand the financial pressure of mounting defect claims and legal costs.

The company owed a total of $14.9 million to creditors, with the lion’s share tied directly to construction defect claims.

According to documents filed with the Australian Securities and Investments Commission (ASIC), Sean Wengel and Rashnyl Prasad of William Buck have been appointed as joint administrators for the firm.

J&CG Construction’s Company Director, Mark Guerreiro, conceded defeat after keeping the business afloat with personal funds.

‘The director considered that the scale of the claims, along with the legal costs, exceeded the company’s financial capacity and rendered the business no longer viable,’ one of the administrators stated.

The most significant blow came from the Rising Apartments development on Botany Road in Mascot.

The 44-unit building, built in 2017, was at the centre of a massive $11.9 million claim from owners who allegedly noticed a raft of defects.

An independent inspection in 2019 uncovered ‘potentially major defects related to the rooftop waterproofing’, along with other minor issues.

Compensation claims are still before the NSW Supreme Court.

Last December, owners of a 15-apartment and two-commercial-lot property on Norton Street in Leichhardt launched a separate legal action towards J&CG Construction.

The owners sought $606,820 in compensation for alleged construction faults.

Administrators also stated that more claims are under review, and the final tally could climb higher as these are complex matters.

J&CG Constructions’ woes did not end with numerous defect claims.

The company’s income plummeted from $15.4 million in 2022/23 to $581,000 in 2024/25 after they stopped taking on new projects.

The construction firm has since focused on finishing existing contracts and dealing with warranty claims.

The business was also hit with $550,000 in SafeWork fines and legal costs and suffered a $250,000 loss from invoice fraud.

Administrators noted that the only reason the company managed to keep its doors open was because Mr Guerreiro personally funded its working capital needs.

However, the $11.9 million Mascot claim was too much for Mr Guerreiro to shoulder.

Rather than heading straight for liquidation, administrators pursued a deed of company arrangement.

This would see Mr Guerreiro contribute $100,000 of his own money, with creditors receiving 68 cents in the dollar.

What does this mean for affected homeowners and buyers?

For anyone who owns a property built by J&CG Constructions, the company’s collapse should be a reminder of the risks involved in buying a home.

Building defects could be a costly, stressful, and time-consuming ordeal.

Here are a few key takeaways for homeowners and prospective buyers:

• Know your rights: In NSW and most other states, new builds are covered by statutory warranties and home building compensation insurance (formerly known as Home Warranty Insurance). If your builder collapses, you may be able to claim for major defects for up to six years after completion.
• Do your homework: Before buying off the plan or engaging a builder, check their track record. Look for reviews, ask for references, and search for any history of legal disputes or defect claims.
• Get independent inspections: Don’t rely solely on the builder’s word. Engage a qualified, independent building inspector to check for defects before settlement or handover.
• Act quickly: If you discover defects, report them in writing as soon as possible. The sooner you act, the better your chances of getting them fixed—especially if the builder is still trading.
• Stay informed: The construction industry is under pressure from rising costs, labour shortages, and regulatory changes. Keep an eye on the news and be proactive about protecting your investment.

For seniors who may be considering downsizing, investing, or helping family members into a new home, it’s more important than ever to be vigilant about home and building safety.

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Key Takeaways

• Sydney construction company J&CG Constructions has gone into voluntary administration after facing over $12 million in building defect claims.
• The largest claim involves over $11 million worth of alleged defects at the Rising Apartments in Mascot.
• The company’s financial situation deteriorated due to mounting legal costs, fines, invoice fraud, and a significant drop in income.
• Administrators sought a deed of company arrangement under which the director would contribute $100,000, and creditors would receive 68 cents in the dollar rather than liquidating the business.

Were you affected by J&CG Construction’s collapse? Do you have advice for others contemplating getting a new home? Please share your stories, tips, and questions in the comments below. Let’s help each other stay informed and protected in these challenging times.

 

[magpie1]

Australian Construction Companies tumbling down under their own weight. And Homeowners left to pick up the pieces of their dream homes.

 

[Towing]

Australian Construction Companies tumbling down under their own weight. And Homeowners left to pick up the pieces of their dream homes.

This has been happening for 40 + years. I know of 2 families whose builders went broke and houses weren't finished. In SA unless the law has changed builders have to pay into a special fund a % of what they are paid for buildings I know of a couple who lodged a claim in the early 2000s