The business began 12 years ago after the two directors, Adrian Doherty and Declan Armour, who had been working together for three years for another construction firm, decided to take the plunge and start up as a reinforced concrete subcontractor.
The firm established itself as a big player in the Yorkshire region and most recently worked for Wates on its Haribo sweet factory job in Castleford.
At its peak Shanco was turning over more than £7m, but had been hit by highly competitive bidding in the region.
Shanco was also due to start work shortly on groundworks for a clinical centre at Pinderfields General Hospital in Wakefield.
But the firm ran into payment and cash flow problems and has ceased trading.
Sheffield-based accountants The P&A Partnership will be holding a creditors meeting next week to start the liquidation process.