Work stopped on all the firms sites earlier in the day and the company is now in the hands of administrator FRP Advisory.

FRP confirmed the business has ceased trading with immediate effect blaming cash flow pressures due to bad debts and rapid expansion.

Tom MacLennan, partner at FRP Advisory and joint administrator, said: “This is a sad loss for the construction and building industry.

“The business faced substantial trading losses on some contracts, leading to severe cash flow pressures.

“Additionally, rapid expansion led to pressure on working capital and a requirement for significant additional funding that was not available.

“Given these issues, the joint administrators have had to cease trading, resulting in 524 employees being made redundant.

“A team of 16 staff will be retained to assist with the closure process and realisation of the business’ assets.

“Our priority is to work closely with all agencies and services to ensure employees receive every support and assistance at this very difficult time.”

Dunne had a turnover last year of £74m and was forecast this year to hit £96m

The firm was working on jobs across the UK including a £32m concrete frame package for Brookfield Multiplex at the 100 Bishopsgate site in the City of London and the tower at One Blackfriars.

It was also working for Mace on the 48 storey concrete frame at its Newington Butts Tower in south London.

Around 300 jobs have been lost in London with the majority of the rest at the Scottish headquarters.

One supplier said: “We first heard rumours this morning and tried to speak to them but have had no joy.

“They owe us a lot of money and we can’t even get in touch with them.”

Another source said: “The site teams were due to be given an update today but no-one seems to know the exact situation.”

Another angry supplier said: “Payment of our bill slowed down but we were assured right up until Monday night that everything was fine and we would get our money.

“Then this happens.”

FRP added: “The Dunne Group owns a substantial portfolio of specialist equipment and assets including cranes, trucks, lifting equipment, excavators and access platforms.

“These items will be valued and marketed for sale in due course.”