McGill & Co employed 429 people across its Dundee headquarters and offices in Glasgow and Edinburgh.
Administrators KPMG said 55 workers will be retained to assist them, with the remaining 374 being made redundant immediately.
A statement by joint administrators Blair Nimmo and Geoff Jacobs said challenging conditions in the construction sector and trading disputes resulted in a “significant funding shortfall” leading the firm to cease trading.
The directors approached potential investors with their business turnaround plan but were unable to secure extra funding.
The statement said this left administration as the “only option” to best protect creditors.
Mr Nimmo said: “McGill & Co Limited is a well-known, long-established business and provides a significant source of employment, particularly in Dundee, both directly and through the supply chain.
“Disappointingly, market conditions and contract-related disputes have required the business to cease trading.
“We will do everything we can to seek a buyer who may be able to protect some of the business and maximise recoveries for creditors.”
He added: “We would encourage any party who has an interest in acquiring any part of the business and its assets to contact us as soon as possible.
“We will be working with employees and have already initiated matters with relevant government agencies to ensure the full range of support is available to all those affected.”
Scottish Business Minister Jamie Hepburn expressed his disappointment.
He said: “Scottish Enterprise engaged closely with the company in recent months and has worked with it to try and find a solution to its difficulties.
“I had spoken with McGill’s managing director and offered the full support of the Scottish Government and Scottish Enterprise.
“Unfortunately, McGill’s trading situation changed rapidly which meant a positive outcome solution for the company was not possible.
“I am seeking a call with the administrators, KPMG, at the earliest opportunity.
“Our Partnership Action for Continuing Employment (PACE) team has been alerted and stands ready to offer its full support to the workforce.”
The 55 staff retained will assist in realising the company’s assets including numerous contracts, an “extensive order book” and construction equipment.
Set up in 1981, the firm traded through five divisions - mechanical and electrical services, fibre and wireless, facilities management, social housing and private residential housing.
A PACE event will be held in Dundee for affected staff on Thursday.