Ten staff have ben laid off at the structural steelwork and cladding and roofing contractor, which was established more than 40 years ago.
Julie Palmer, partner at the Salisbury office of administrators Begbies Traynor, said: “Test Valley Engineers was a long established firm which had managed to survive two or three recessions, but it had an issue with one of its contracts.
“A significant amount of money was left outstanding, that crippled cash flow and the business was unable to trade out of its difficulties.
“Lots of sub-contractors are trading on low or no margins just to keep their employees busy.
“But all they are doing is creating a problem down the line, a problem which will catch up with them.”
Test Valley Engineers had a turnover of £1.5m.