It is understood that some 160 of the firm’s 200-strong workforce have been made redundant, with the remainder kept on to assist administrators from EY.
A spokeswoman said: “In due course, the administrators will decide how best to take matters forward. The business has been under considerable pressure for a number of years. Demand in our traditional construction market has been very weak since 2012 and margins have been significantly reduced.
“In the recent past, the collapse of the oil and gas sector has applied further pressure. This has meant that the business has been loss making and under cash pressure.”
As well as the Sir Chris Hoy Velodrome, Galloway – which can trace its roots back to 1872 – has worked on the British Museum in London and the Scottish Parliament in Edinburgh.
The spokeswoman said the firm’s directors, led by managing director Jim Mathieson, had worked “tirelessly” to avoid insolvency through a number of initiatives, including cost cutting, modernising the business and raising finance.
“Efforts to raise finance are significantly impaired because of the high debt burden on the business from both previous borrowings and the final salary pension scheme,” she added.
“This is a very sad day for a long-established Dundee company and our thoughts and best wishes are with the employees and creditors of the business. We will continue to work with EY during the administration process as may be required.”