'Absolutely gutted' home owner left to pay mortgage and rent after WA construction company collapses

A stop work was called at all Hamlen Homes construction sites in Western Australia, after the company went into administration.

Now, a half-complete house is all single father Jamie Patterson is left with.

"Absolutely gutted. Absolutely gutted, it hasn't sunk in yet," he tells 9News.

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Metro Homes WA, which also trades as Hamlen Homes, collapsed into voluntary administration on Monday, leaving a whopping $1.4 million bill.

In total 18 properties - including a $50 million development in East Victoria Park - are now in limbo, dashing the dreams of this southern suburbs first home buyer.

"I'm still paying the mortgage off, plus renting as well," Patterson said.

"So it's a bit of a stressful moment."

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And it's a nightmare for contractors too.

"We're out of pocket almost $30,000 and it's a battle," Nick Duncan from Red Tag Roofing told 9News.

At least 94 WA construction businesses collapsed between 2021 to 2022, according to the Australian Securities and Investment Commission.

Just a month ago, WA Housing Group and Industrial developments collapsed.

Last year, several building firms entered insolvency in Western Australia including New Sensation Homes, Home Innovation Builders, Pivotal Homes, Probuild, Condev Construction, Waterford Homes, Privium and Pindan Group.

The construction industry is calling on the state government to step in by introducing a support package and better regulation to prevent more businesses going bust.

"I've been roofing, contracting for 30 years, and this is the worst it's ever been," Duncan said.

"This is just the beginning, I'm sure a lot of builders are doing it tough."

Soaring construction costs are a result of demand and pressure for materials, labour shortages, and skyrocketing inflation which hit 7.8 per cent

And the rising construction costs haven't just plagued Western Australia, across other states building firms have collapsed like EQ Constructions in NSW, LDC Pty Ltd in Brisbane and Hallbury Homes in Victoria.

Wait for answers begins

Clifford Rocke and Greg Prout from WA Insolvency Solutions have been appointed as administrators for Metro Homes WA.

The pair are currently undertaking an "urgent assessment" of the financial position of the business.

"We are looking at restructuring/recapitalising Metro Homes, which is part of the Hamlen Group of Companies, through the wider group," Rocke said.

"At this stage we are not trading Metro while we consider the possibility of restructuring or recapitalising the business.

"We anticipate contacting all homeowners and the wider group of stakeholders tomorrow (February 15) at the latest.

"It is still early days and we continue to do our investigations."

About 30 creditors are owed $800,000 while the tax office is owed $600,000.

It's understood all staff wages were up to date but superannuation is owed.

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