So, NSW Strata Building Defects are Hunky Dory … Think Again

If you’ve been reading the media releases and posts by NSW regulators and some strata stakeholder groups over the last few years, you’d think that strata building defects are a thing of the past with the law changes that have occurred, the NSW Building Commissioner’s work and decennial insurance.

Well, think again.

That’s because the tough economic environment many businesses, especially developers and builders, are experiencing is surfacing all the cracks just below the plaster.

This Daily Telegraph article by Sarah Simpkins, Sydney Building Company JCG Constructions Collapses with Almost $15M Debts Amid Claims of Building Defects, explains how multiple strata building defect claim cases have put this builder into administration and, potentially, liquidation.

So, it looks like these strata building defects aren’t going to be resolved by the builder, developer, government or anyone else.

Some key takeaways from the news include the following.

• One strata building that was built in 2017 is in the midst of multi-year Supreme Court litigation over $11.9 million in defect rectification costs.

• Another strata building had started NCAT proceedings in December 2024 for $606,820 in defect rectification costs.

• There are other strata buildings with uncosted defects.

• Presumably, since the strata buildings are over 3 storeys, there’s no Home Building Insurance cover.

• JCG Constructions is just one of the companies in the J + CG Group.

• JCG Constructions didn’t do any building work in 2024 or 2025 and made a loss of $704,000 in 2025.

And, the coup de grace for all these strata buildings is that the director has proposed a deed of company arrangements where he contributes $100,000 to be shared by creditors who’ll receive 0.68 cents per dollar of unsecured debt.

BTW ... that’s $80,920 for that strata building with $11.9 million in rectification costs.

So, it don’t like strata building defects are hunky dory in NSW to me.

You can read the full article here.