Muirfield had a turnover of £47m and was engaged on around 20 projects where work has now stopped.

The firm said it 110 employed labour-only subcontractors at the time of administrators being appointed.

A Muirfield statement said: “Joint administrators, Derek Forsyth and David Hunter, Partners with Campbell Dallas, will now explore all options for the company.”

Administrator Derek Forsyth said: “Muirfield Contracts is a household name in Scotland’s construction sector with an excellent reputation for the quality of its client base and projects.

“Although the company has a large turnover, it had been suffering from unsustainable cash flow problems and despite best efforts to raise additional funding administration was the only option.

“It is likely that a significant number of employees will be made redundant in the early stages of the administration and they will be advised as soon as possible.

“We recognise that this is a very difficult time for all concerned and will do our utmost to provide as much support as we can.”

Harry Frew, Regional Secretary for UCATT Scotland, said: “Muirfield is a major employer in the region especially in Dundee, if the company cannot be rescued it will be a bitter blow and create a major hole in the local economy.”