The firm called in administrators last Friday after trouble on several jobs led to cash flow problems.

Also the builder was engaged in a lengthy legal dispute with the local council after it was sacked halfway through a job to build a Visual Arts Facility in Colchester last April.

The dispute with Colchester Council had been rumbling on with Banner claiming £1.4m from the council, which in turn counterclaimed an estimated £2m.

In April this year, an independent adjudicator decided Banner Holding had failed to follow the council’s instructions, did not carry out construction “in a workmanlike manner” and left project managers believing the arts building would not be built on time.

Bell Advisory has been appointed administrators and all of the firm’s 30 staff have lost their jobs.

Turnover fell from £24m in the year to 31 December 2007 to £10m in 2008, before recovering slightly to £13m in 2009.

The firm recorded a pre-tax profit of £159,000 in 2009, but suffered a £2.8 million pre-tax loss in 2009.