Graham Shennan, former Morgan Ashurst boss, heads up the new enlarged construction division, which will now trade as Morgan Sindall.

Chairman John Morgan told the Enquirer: “We are doing this as a mechanism for growth, not cost cutting.

“Our clients wanted us to do this because the different brand names were a bit confusing to be honest.”

He said: “Graham will start looking at the organisational structure right away.

“There may be some reorganisation and possibly even some job losses, but this is really about tidying up our business into one big strong offering.”

Shennan is a charted civil engineer, which puts him in a strong position to bring building and civils together as an integrated business.

He joined Morgan Sindall in 2002 and boasts a strong senior management track record in construction, civil engineering, plant and design.

Former Morgan Est boss, Mark Cutler, left the business this week.

The civils and building business both made strong profits last year and the enlarged division is expected to boast a turnover of around £1.5bn.

Around 60% of Morgan Sindall’s orders are public sector contracts, which means future spending cuts will impact on the new division.