LAND & Building Services, the Dundee-based construction firm, has gone into administration with the loss of all 27 jobs.

The insolvency was caused by difficult trading conditions and the loss of major client McGill & Co, the fellow Dundee business which went bust last week. More than 370 people were immediately made redundant at McGill, which ran into a "significant funding shortfall" amid a trading dispute and challenging conditions in the construction sector.

Administrators at Campbell Dallas said the loss of the McGill work contributed to severe and unsustainable cash flow problems at Land & Building Services, which was founded in 1990.

The company, which gained recognition for its work on the Linlathen East Bridge, Scotland's oldest iron bridge, from the Saltire Society and Historic Scotland, has ceased trading with immediate effect.

The failure comes with Dundee still reeling from the announcement by Michelin before Christmas that it would shut its tyre factory in the city with the loss of almost 850 jobs.

Derek Forsyth, business recovery partner with Campbell Dallas said: “The trading and cash flow problems affecting the construction sector are well-documented, and unfortunately Land & Building Services has been affected by these issues, together with the loss of a major client (McGill & Co) in the Tayside market.

“We will now be marketing the company’s assets for sale, including remaining contracts, and a wide range of plant and equipment, and would urge interested parties to contact us as soon as possible. We will also be working closely with the relevant agencies, including the Redundancy Payments Office, to ensure the employees receive as much support as possible."