Aussie Home Builder collapses after he has been flooded with more than $ 12 million in customer claims about alleged building defects

A Sydney The construction company went into voluntary administration after the increasing pressure resulting from $ 12.9 million in claims from buildings on buildings.

Family Runned J&CG constructions have been in use since 1994 and built apartment complexes, offices and commercial spaces until the company was placed in administration in May.

According to documents submitted to ASIC, Sean Wengel and RashnyNL Prasad of William Buck have been appointed as joint managers.

The ASIC application follows legal steps in both NSW Supreme Court and the NSW Civil and Administrative Tribunal (NCAT).

A total of $ 14.9 million owed to creditors, with the vast majority linked to claims from the construction disorders.

Company director Mark Guerreiro said that the company could not survive the financial burden, the managers wrote in their report.

“The director was of the opinion that the size of the claims, together with the expected legal costs that would defend them, no longer made the financial capacity of the company and the company no longer made it viable,” the report said.

The biggest claim comes from the rising apartment development at Botany Road in Mascot, a complex of 44 units completed in 2017.

The Rising Apartments Development (photo) where homeowners claim that nearly $ 12 million in defects were found

Owners of the Mascotte Building claim that defects collectively worth $ 11.9 million, with an independent inspection of 2019 that discover ‘potentially large defects with regard to the watertightness on the roof’, along with various small problems.

That issue remains for the NSW Supreme Court.

A second legal action was started in December by owners of a 15-apartment and two-commercial real estate at Norton Street in Leichardt, who are $ 606,820 looking for compensation for alleged construction errors identified in 2023.

Administrators say that more defect claims are being revised, and the final total could increase as complex matters are resolved.

J&CG Constructions had stopped taking new projects in the 2024-2025 financial year and chose instead to concentrate on existing contracts and guarantee -related claims.

Despite these efforts, the company saw its income fall, from $ 15.4 million in FY2023 to just $ 581,000 in FY2025.

It was also confronted with a series of financial setbacks, including a hit of $ 550,000 from Safework fines and legal costs, and an extra loss of $ 250,000 due to invoice fraud.

In FY2025 alone, the company registered a loss of $ 704,000, after a loss of $ 1.9 million the year before.

Matt Guerreiro (left) is the director of the company that is in administration. The owners of a Leichardt (right) are looking for more than $ 600,000

Administrators noted that Mr Guerreiro’s continuous activities had been piled up personally, financing his working capital.

“The company remained able to trade only before this period and to meet the obligations, only because the director has financed personal working capital needs,” the report said.

However, the threatening claim of $ 11.9 million of the development of the mascot ‘would place the company in an insolvency position that he could no longer support, “the report concluded.

Mr Guerreiro was also mentioned as director of related entities J&CG Con, J&CG Group and J&CG Fitouts.

Administrator pursued a certificate of company scheme instead of liquidation, as a result of which Mr Guerreiro would bring in $ 100,000 of his own money and creditors would receive 0.68 cents to the dollar.

Daily Mail Australia has contacted J&CG Group for comments.