Beleaguered Sydney home builder J+CG: Building & Construction Company has entered administration, owing tens of millions to both creditors and customers due to alleged building defects.
The family-owned company began operations in 1994, and constructed multi-storey apartment buildings, office complexes and commercial and retail spaces.
The home builder was put into administration in May amid ongoing legal cases in the NSW Supreme Court and the NSW Civil and Administrative Tribunal relating to the alleged breach of building standards in the construction of it’s apartments.
J+CG owes about $14.9 million to a number of creditors, primarily relating to alleged claims of construction defects according to documents lodged with ASIC on Friday.
The most considerable defect claim relates to the construction of the Rising Apartments in Mascot on Botany Road, which amounts to a combined $11.9 million.
The complex was completed in 2017 and consists of 44 apartments and four commercial lots with the owners of the building ordering an inspection in 2019 which found “potentially major defects related to the rooftop waterproofing”.
The matter is still being litigated in the NSW Supreme Court, with joint administrators Sean Wengel and Rashnyl Prasad indicating the claims, if proven in court, would push the company to insolvency.
Another J+CG apartment complex in Leichardt is also before the NSW Civil and Administrative Tribunal, with owners claiming they are owed $606,820 after commissioning a defect report in 2023.
Director and shareholder of the construction firm Mark Guerreiro told administrators that the companies collapse was due to the financial burden of the defect claims.
“The director considered that the scale of the claims, along with the legal costs expected to defend them, exceeded the company’s financial capacity and rendered the business no longer viable,” the administrators’ ASIC report said.
The combined defect claims amount to an estimated $12.9 million.
The company was the last remaining entity of the J+CG brand, which once included J+CG Con, J+CG Group and J+CG Fitouts.
The firm’s income drastically plummeted in the last two years, with its total revenue halving from $15.4 million in FY2023 to $7.7 million in FY2024, and further dropped to just $581,000 in FY2025.
However, the home builder not only faced legal bills, defect claims and soaring debts, but was forced to pay $550,000 in fines and legal costs for a work safe incident and an additional $250,000 due to an invoice fraud case.
The report also stated that J+CG Constructions only survived so long due to the personal financing of Mr Guerreiro, with the firm transferring all assets and employees to J+CG Projx in March in anticipation of the company’s failure.
ASIC data revealed that construction and hospitality firms continue to lead insolvency statistics, with labour shortages, high material costs and planning and approval delays serving as major challenges to the industry.
In the financial year to March 2025 2,636 construction companies became insolvent for the first time, up 23 per cent from the previous year according to ASIC.
