The groundworks firm, which was a member of the Civil Engineering Contractors Association, worked for several local authorities and NHS Trusts in the north east.

In recent years, boss Adrian Barton managed to take the business from groundworks subcontractor to main civils contractor on several jobs.

But new orders dried up leaving the company with cashflow problems.

David Willis of Stockton on Tees firm BWC Business Solutions is handling the administration.

The collapse of the firm came as the civil engineering trade body CECA predicted an even tougher year ahead for the North East’s already hard-hit construction firms.

Initial work by local enterprise partnerships in the region confirms the industry findings of an ongoing lack of support from banks and the Government.

Douglas Kell, director of the Civil Engineering Contractors Association (North East), said his organisation’s recent checks indicate the North East as still hardest hit, along with Wales – “a trend that regrettably looks like continuing during 2011.”

The Government’s “purported” support for SMEs and promotion of growth in the local economy has not materialised, he added.

“My enquiries lead me to believe initial work by the LEPs confirms a lack of support  in the North East.

“They are not as yet obtaining or winning any money beneficial to our industry. In other words, no work for us”

Michael Henning, North East spokesman for the Royal Institution of Chartered Surveyors, said:  “The acute shortage of new construction work in the region is seriously impacting across the sector.

“Costs of running a business are rising, while a cut-throat market is driving down fees and profit margins.”