Dumfries based R&D Construction, which employs around 400 workers, blamed a banking glitch on Friday for the delay.

But staff were told not to report for work on Monday and the main office number was redirected to an answering machine.

R&D is a house builder and design and build contractor and is currently working on a £77m housing renewal programme in Dumfries and Stranraer.

The renewal project is being funded by Dumfries and Galloway Housing Partnership (DGHP), the Scottish government and the local council.

Labour MP for Dumfries and Galloway, Russell Brown, said he had spoken to the chief executive of R&D at the weekend, and was now seeking urgent talks with the construction group’s bank.

Brown said: “I’ve spoken to R&D’s Chief Executive and told him I’m going to do all I can to support the company.

“There are over 400 jobs on the line in Scotland, 200 of which are here in Dumfries and Galloway. Any question of job losses on that scale would be devastating for our region and simply cannot be allowed to happen.

“R&D is the main contractor for DGHP’s neighbourhood renewal programme, and is building dozens of homes in Dumfries and Stranraer. Along with saving these jobs, I want to make sure these important regeneration plans aren’t derailed.

“Once again, I have serious concern about the behaviour of a bank and I’m seeking to urgently talk with them to assist with R&D’s case. I hope they will listen and give the company the additional time that they need to get back on track.

“R&D is a good local business and I’m confident they will recover from this. My heart goes out to the hundreds of employees who are now worried for the future and my message to them is I’ll be with them every step of the way.”

R&D Construction is the building subsidiary of the R&D Construction Group.