A Sydney-based construction company, J&CG Constructions, has entered voluntary administration after being overwhelmed by $12.9 million (£6.4 million) in building defect claims. The family-run firm, which had operated since 1994, was placed into administration in May, according to documents filed with the Australian Securities and Investments Commission (ASIC).
Joint administrators Sean Wengel and Rashnyl Prasad of William Buck have been appointed. The company owes $14.9 million (£7.4 million) to creditors, with the majority linked to construction defect claims. Director Mark Guerreiro stated that the scale of the claims and associated legal costs exceeded the company's financial capacity, rendering the business unviable.
The largest claim stems from the 44-unit Rising Apartments development on Botany Road in Mascot, completed in 2017. Owners allege defects worth $11.9 million (£5.9 million), including potentially major issues with rooftop waterproofing identified in a 2019 inspection. A second legal action from owners of a property on Norton Street in Leichardt seeks $606,820 (£302,000) in compensation for alleged construction faults.
J&CG Constructions had taken on no new projects in the 2024/25 financial year, focusing instead on existing contracts and warranty claims. Its income plummeted from $15.4 million (£7.7 million) in 2022/23 to just $581,000 (£289,000) in 2024/25. The company also faced $550,000 (£274,000) in SafeWork fines and a $250,000 (£124,000) loss from invoice fraud, recording a $704,000 (£350,000) loss for the year.
Administrators noted that the company continued trading only because Mr Guerreiro personally funded working capital. However, the looming $11.9 million claim from the Mascot development placed the company in an insolvent position he could no longer support. Administrators are pursuing a deed of company arrangement, under which Mr Guerreiro would contribute $100,000 (£50,000) of his own money, allowing creditors to receive 68 cents to the dollar.
