The contractor confirmed today that the cost reduction programme will include “a streamlining of the structure of the operating companies, with a focus on market segments and value creation.”

The move follows fresh losses of £60m on “a mid-sized UK civil engineering project which was bid for in 2012” and deterioration of a large civil engineering project in Germany.

BAM blamed the losses on the UK job on “a combination of adverse ground conditions and bad weather.”

The firm said it would maintain its current structure based on two operational sectors – Construction and M&E services and Civil engineering.

BAM is also looking to strengthen its financial position to remain within its banking covenants with further details of the restructing due to be announced with publication of the six months results on 21 August.

Nico de Vries, Chairman of the Executive Board: “I am extremely disappointed to have to announce these negative developments.

“Our underlying strategy is the right one, but our delivery has not been good enough.

“It is fully clear to the Executive Board that BAM must act urgently and decisively to get all parts of the Group to contribute positively to our results.

“That is why we are taking the actions being announced today.”