Hayes finished recording his third solo album This Delicate Thing We’ve Made in 2007. The album is a double-disc, with 25 tracks. Many of the tracks were co-written with Robert Conley, and a great deal of the album was written with and produced by Justin Shave, who played keyboards for part of Hayes’ Time Machine tour. The album was released on 20 August 2007 on Hayes’ own independent record label, Powdered Sugar, while the first single “On the Verge of Something Wonderful” was released in Australia on 28 July 2007 and in the UK and online on 6 August 2007.
On 9 April 2007, Hayes released the album track “Who Would Have Thought” from This Delicate Thing We’ve Made as a teaser track on his official website, as well as his MySpace profile. This was accompanied by an animation for the song created by his partner, animator and director, Richard Cullen. Around April 2007, remixes of the album track “Step into the Light” were being played in clubs around the world. The album version of “Step into the Light” was released as a teaser on Hayes’ official website and MySpace on 30 April 2007.