Cavan based P Elliott is believed to have drafted in Ernst & Young to advise on a restructuring following cash-flow problems.

The Sunday Business Post said Elliott has been unable to pay subcontractors and let most of its staff go in Ireland last week.

The contractor has been a major player across Ireland and the 2012 contract is the firm’s largest job in the UK where it has also picked up work with supermarket chain Lidl in London and moved to a new office in Canary Wharf in February.

Elliott started on site in December 2009 on the £30m contract to build plot N14 of the Athletes Village which is due for completion in August. Up to 280 people are employed on the site.

The Olympic Delivery Authority admitted earlier this year that it had spent £6m propping-up firms working on the Village to avoid disruption to tight construction schedules.

An ODA spokesperson said: “We are in discussions with P Elliott and both parties are confident that their work on one of the 11 residential plots in the Olympic Village will remain unaffected. Construction work across the wider Olympic Village site is firmly on track.”