The payout being proposed by administrator Mazars represents one of the best outcomes for creditors from a contractor administration for some time.

Ocon collapsed in March owing £2.5m to specialist contractors and suppliers for work completed as well as £2.2m to 285 subcontractors held in retentions.

The repayment plan will be put to a creditors meeting on 2 May. In the worse case scenario trade contractors stand to receive 14p in the pound,  which could rise to 22p if the full value of assets is realised.

Mazars’ latest creditors report revealed that Ocon was owed £8.2m by its parent company Opal, which is seeking to refinance with debts of £880m owed to 14 lenders.

According to the last results for 2012, Ocon booked a loss of £350,000 from £41m turnover.

Despite forecasting a break-even result in 2013, in January Ocon’s future became questionable when owners Opal revealed the extent of its debts.

This hit Ocon’s credit rating and the ability of its supply chain to obtain credit insurance.

Mazars were called in by Ocon’s directors to assess its financial position in February. This revealed the need for more than £3m to fund a handful of contracts with Liverpool, Loughborough and Sussex Universities.

The directors failed to obtain any financing from Opal and decided then to place the specialist student accommodation builder in administration.