Andrew Davison and Colin Dempster of Ernst & Young have been appointed joint administrators at R&D Construction and its parent company Robison & Davidson (Holdings) Limited.
Davison said: “Difficult trading conditions arising from low demand in the private housing market that were further exacerbated by the harsh winter necessitated our appointment.
“We are currently undertaking a full review of the company’s financial position.”
Fears have been growing over the firm’s future since last week and work on its main £77m housing project has been halted.
Dumfries and Galloway Housing Partnership has padlocked sites across the region which were being developed on its behalf by R&D Construction.
Local workers and politicians contacted the Dumfries and Galloway Standard to voice their concerns over the contractor.
R&D employee Malcolm Campbell, 46, said: “No one from the company has spoken to us to tell us what’s going on. Site workers have been told just to not bother turning up.”
Concern about R&D first emerged last week when staff reported wages hadn’t been paid.
But a problem with the BACS wages system was blamed and payment was later made.
Bosses at the firm have not been available to comment and calls to the head office are met with an answering machine.
A DGHP spokeswoman said: “We are closely monitoring the situation surrounding the financial position of R&D Construction.
“In the meantime, we have taken over the security of the sites to prevent any attempts to take materials, machinery and plant equipment off site.”
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