The move means small and medium sized contractors are being priced out of the market by bigger rivals who can absorb the odd job priced at lower margins.

One highways specialist told the Enquirer: “We priced a big maintenance job up recently but didn’t come within 15% of the firm who won it.

“At that level they can’t be making anything and I’m sure they are making a loss but they just want to keep their people turning over.

“In the long run it’s suicide but that’s the market we are operating in now I’m afraid.”