For three long years, Simon and Sheri Davies have been trapped in a builder's nightmare that would test anyone's resolve. Their dream home in Bayswater sat as an empty shell while they paid both rent and a mortgage, watching squatters move into the structure they'd invested their life savings in.
But sometimes the worst news can actually be the best news—and that's exactly what happened when their latest builder, Tingey Development Group, collapsed this week.
'There's been so many tears, so many tears,' Sheri said, her voice capturing the exhaustion of thousands of Australian families caught in the construction industry's unprecedented meltdown. But for the first time in years, there's a genuine reason for hope.
The silver lining in a builder's collapse
When a builder goes bust, customers who spoke to the media said they were 'elated' that the company had formally collapsed so that up to $200,000 in indemnity insurance could be put towards finishing homes that have been idle building sites for years.
It sounds counterintuitive, but Tingey's collapse is actually the breakthrough Simon and Sheri needed.
In Western Australia, any residential building work valued over $20,000 requires builders to take out home indemnity insurance in the name of the owner before accepting payment or commencing work.
This insurance protects homeowners against financial loss when a builder can't complete contracted work because the builder has died, disappeared or become insolvent.
The Davies family, along with 14 other affected households, can now access this crucial safety net that was previously locked away while Tingey struggled on.
'You just want to be in your safe space, your home.'
Australia's construction crisis hits home
The Tingey collapse isn't an isolated incident—it's part of a construction industry meltdown that's affecting families across the country. In the first seven months of this financial year, 1,999 construction firms were declared insolvent.
This was 26 per cent higher than the same period in 2023-24 and 69 per cent higher than 2022-23.
Perth has been particularly hard hit. Perth's Inspired Homes collapsed in April 2025, leaving at least 80 customers with unfinished homes dating back to 2020.
The renowned 65-year-old Collier Homes, one of Western Australia's best known residential building companies, shocked the industry by collapsing into liquidation, ending a legacy that began in 1959.
These aren't fly-by-night operators. These are established companies that have been building Australian homes for decades, succumbing to what industry experts describe as a 'perfect storm' of challenges.
What is home indemnity insurance?
Required for building projects over $20,000 in WA
Purchased by builder, protects the homeowner
Covers incomplete work, defective work, and lost deposits
Only pays out if builder dies, disappears, or becomes insolvent
Coverage typically lasts 5-6 years for structural defects
In WA, there's a $500 excess to make a claim
What's driving the builder exodus
Much of this has been blamed on high construction costs and a lack of skilled labour to do the actual work of building much needed new homes. Neither causal factor looks like going away, suggesting the onslaught of building company failures would continue deep into 2025.
The numbers paint a stark picture. The building and construction industry's total value of work in the year to June 2023 was just shy of $270 billion, according to Master Builders Australia. That's more than 10 per cent of the country's GDP. Yet this massive industry is hemorrhaging workers and companies at an alarming rate.
Adrian Hart from Oxford Economics Australia noted that 'we have allowed education, training and skills development to wither over the past decade and are now paying the price for this shortsightedness.
VET completions in construction-related fields are down nearly 55 per cent since 2012, engineering-related VET completions are down by almost 60 per cent.'
The path forward for affected families
For families like the Davies, the immediate priority is navigating the insurance claims process. QBE Insurance, which arranges indemnity insurance cover on behalf of the WA Department of Mines, Industry Regulations and Safety, will require the payment of $500 excess to make a claim on home indemnity policy. This means that the homeowner may have to pay the first $500 of any claim.
The process involves contacting the insurance company directly, providing documentation of the original contract, and working with them to arrange completion of the work by new builders.
However, while the triggering of the indemnity insurance is a positive outcome, they will still confront the same issues that led to their builder's demise, namely finding builders with the capacity to take on their jobs in the face of labour shortages and other issues.
Protecting yourself in uncertain times
While the construction industry works through its challenges, there are practical steps you can take to protect yourself when engaging any builder:
Essential protection when choosing a builder
- Always verify insurance certificates before signing contracts
- Check builder licensing through state regulatory bodies
- Request and contact recent customer references
- Never pay large sums upfront—follow recommended payment schedules
- Ensure all agreements are in writing with clear completion dates
- Consider engaging a building inspector for independent advice
The best way to protect yourself against dodgy builders is to know the builder you're dealing with through trusted references and talking to past customers. Because licensing is no guarantee of reliability or accountability, the best way to find a builder is through personal references from people you trust.
Hope amid the chaos
Despite the industry turmoil, there are reasons for optimism. The home indemnity insurance system, while imperfect, does provide a genuine safety net for homeowners.
Last financial year, the South Australian government provided a record $18.7 million to assist consumers in completing their home builds and renovations through building indemnity insurance.
For Simon and Sheri Davies, who had put their family planning on hold due to the uncertainty of their rental situation, the collapse of their builder paradoxically offers the clearest path forward they've had in three years. Their tears of frustration may finally be replaced by tears of joy as they move into their long-awaited home.
What This Means For You
The construction industry's challenges are far from over, but for families caught in the crossfire, understanding their rights and protections can make all the difference between despair and hope.
Have you been affected by a builder collapse, or are you concerned about choosing a reliable builder in the current market? Share your experiences and questions in the comments below—your insights could help other readers navigate these challenging times.
Original Article
https://www.9news.com.au/national/t...ollapses/fbc8e0c3-6d79-4c06-90cd-c8e10402f59b
Prominent Perth builder Inspired Homes collapses—building and construction news—API Magazine
Cited text: Customers who spoke to media said they were “elated” that the company had formally collapsed so that up to $200,000 in indemnity insurance could be pu...
Excerpt: When a builder goes bust, customers who spoke to media said they were 'elated' that the company had formally collapsed so that up to $200,000 in indemnity insurance could be put towards finishing homes that have been idle building sites…
https://www.apimagazine.com.au/news/article/prominent-perth-builder-inspired-homes-collapses
Home indemnity insurance—factsheet
Cited text: If residential building work valued over $20,000 is to be undertaken, the Act requires that a builder take out home indemnity insurance in the name of...
Excerpt: In Western Australia, any residential building work valued over $20,000 requires builders to take out home indemnity insurance in the name of the owner before accepting payment or commencing work.
https://www.wa.gov.au/government/publications/home-indemnity-insurance-factsheet
Home Indemnity Insurance WA | HIA Insurance Services Home Indemnity Insurance WA | HIA Insurance Services
Cited text: Home Indemnity Insurance (HII) protects a homeowner (and any subsequent owner) against financial loss when a builder can’t complete contracted work or...
Excerpt: In Western Australia, any residential building work valued over $20,000 requires builders to take out home indemnity insurance in the name of the owner before accepting payment or commencing work.
https://www.hiainsurance.com.au/products/home-warranty-insurance/home-indemnity-insurance-wa
More builders likely to fail in 2025 in absence of any silver bullet—building and construction news—API Magazine
Cited text: In the first seven months of this financial year, 1,999 construction firms were declared insolvent. This was 26 per cent higher than the same period i...
Excerpt: In the first seven months of this financial year, 1,999 construction firms were declared insolvent.
https://www.apimagazine.com.au/news...-in-absence-of-any-construction-silver-bullet
Prominent Perth builder Inspired Homes collapses—building and construction news—API Magazine
Cited text: Prominent Perth builder Inspired Homes collapses Another major residential home builder has folded, with Perth's Inspired Homes leaving dozens of...
Excerpt: Perth's Inspired Homes collapsed in April 2025, leaving at least 80 customers with unfinished homes dating back to 2020.
https://www.apimagazine.com.au/news/article/prominent-perth-builder-inspired-homes-collapses
Prominent Perth builder Inspired Homes collapses—building and construction news—API Magazine
Cited text: At least 80 customers have unfinished homes dating back to 2020.
Excerpt: Perth's Inspired Homes collapsed in April 2025, leaving at least 80 customers with unfinished homes dating back to 2020.
https://www.apimagazine.com.au/news/article/prominent-perth-builder-inspired-homes-collapses
Prominent Perth builder Inspired Homes collapses—building and construction news—API Magazine
Cited text: At least 80 customers of Inspired Homes have unfinished homes dating back to 2020.
Excerpt: Perth's Inspired Homes collapsed in April 2025, leaving at least 80 customers with unfinished homes dating back to 2020.
https://www.apimagazine.com.au/news/article/prominent-perth-builder-inspired-homes-collapses
Renowned Perth builder Collier Homes collapses—building and construction news—API Magazine
Cited text: Renowned Perth builder Collier Homes collapses One of Western Australia's best known and oldest residential building companies, Collier Homes, ha...
Excerpt: The renowned 65-year-old Collier Homes, one of Western Australia's best known residential building companies, shocked the industry by collapsing into liquidation, ending a legacy that began in 1959.
https://www.apimagazine.com.au/news/article/renowned-perth-builder-collier-homes-collapses
Renowned Perth builder Collier Homes collapses—building and construction news—API Magazine
Cited text: Collier Homes’ shocking failure ends a legacy that began when the home builder was founded in 1959.
Excerpt: The renowned 65-year-old Collier Homes, one of Western Australia's best known residential building companies, shocked the industry by collapsing into liquidation, ending a legacy that began in 1959.
https://www.apimagazine.com.au/news/article/renowned-perth-builder-collier-homes-collapses
More builders likely to fail in 2025 in absence of any silver bullet—building and construction news—API Magazine
Cited text: Much of this has been blamed on high construction costs and a lack of skilled labour to do the actual work of building much needed new homes. Neither ...
Excerpt: Much of this has been blamed on high construction costs and a lack of skilled labour to do the actual work of building much needed new homes.
https://www.apimagazine.com.au/news...-in-absence-of-any-construction-silver-bullet
Builder warns of industry collapse after 50,000 tradies quit: ‘Very bleak’
Cited text: The total value of work done in the year to June 2023 was just shy of $270 billion, according to Master Builders Australia. That’s more than 10 per ce...
Excerpt: The building and construction industry's total value of work in the year to June 2023 was just shy of $270 billion, according to Master Builders Australia.
https://au.finance.yahoo.com/news/b...-50000-tradies-quit-very-bleak-033832621.html
More builders likely to fail in 2025 in absence of any silver bullet—building and construction news—API Magazine
Cited text: “The fact is, we have allowed education, training and skills development to wither over the past decade and are now paying the price for this shortsig...
Excerpt: Adrian Hart from Oxford Economics Australia noted that 'we have allowed education, training and skills development to wither over the past decade and are now paying the price for this shortsightedness.
https://www.apimagazine.com.au/news...-in-absence-of-any-construction-silver-bullet
Home Indemnity Insurance WA | HIA Insurance Services Home Indemnity Insurance WA | HIA Insurance Services
Cited text: Note that QBE Insurance, which arranges indemnity insurance cover on behalf of the WA Department of Mines, Industry Regulations and Safety, will requi...
Excerpt: QBE Insurance, which arranges indemnity insurance cover on behalf of the WA Department of Mines, Industry Regulations and Safety, will require the payment of $500 excess to make a claim on home indemnity policy.
https://www.hiainsurance.com.au/products/home-warranty-insurance/home-indemnity-insurance-wa
Prominent Perth builder Inspired Homes collapses—building and construction news—API Magazine
Cited text: “Rising costs from subbies (subcontractors) and suppliers and the challenges facing the construction industry with the shortages of trades and materia...
Excerpt: while the triggering of the indemnity insurance is a positive outcome, they will still confront the same issues that led to their builder's demise, namely finding builders with the capacity to take on their jobs in the face of labour…
https://www.apimagazine.com.au/news/article/prominent-perth-builder-inspired-homes-collapses
Home and builders warranty insurance | CHOICE
Cited text: The best way to protect yourself against dodgy builders is to know the builder you're dealing with through trusted references and talking to past cust...
Excerpt: The best way to protect yourself against dodgy builders is to know the builder you're dealing with through trusted references and talking to past customers.
https://www.choice.com.au/money/insurance/home-and-contents/articles/home-warranty-insurance
Home and builders warranty insurance | CHOICE
Cited text: · And because licensing is no guarantee of reliability or accountability, the best way to find a builder is through personal references from people yo...
Excerpt: The best way to protect yourself against dodgy builders is to know the builder you're dealing with through trusted references and talking to past customers.
https://www.choice.com.au/money/insurance/home-and-contents/articles/home-warranty-insurance
Greater protection for home builders | Consumer and Business Services
Cited text: Last financial year, the state government provided a record $18.7 million dollars to assist consumers in completing their home builds and renovations....
Excerpt: Last financial year, the South Australian government provided a record $18.7 million to assist consumers in completing their home builds and renovations through building indemnity insurance.
https://www.cbs.sa.gov.au/news/greater-protection-for-home-builders
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