The company is, however, continuing to maintain a presence on the site for security purposes.

Directors of Lilleys Construction, which employs around 200 people and had been trading profitably, contacted accountancy firm Pricewaterhouse Coopers and placed the company in administration after its former parent company Sunley Turrif folded, owing Lilleys around £6 million and thus creating a devastating cashflow problem.

Joint administrator Bruce Cartwright said although he couldn’t comment on the Dundee project specifically, the immediate concern was ensuring the continuity of contracts.

“It’s in everybody’s interests that we find a solution as soon as possible, because in the construction business it is vital that continuity is maintained.

“While I am unable to speak on specific contracts, we are exploring all avenues and have identified people who we thought might come on board and help to maintain that continuity.

A spokesman for Abertay University said, “We understand that Lilley Construction placed themselves into administration yesterday while they attempt to deal with a severe cashflow problem.

“The administrators have indicated that they are seeking a speedy solution to the problems facing the company, but work on our Student Centre has ceased for the present.

“This is a matter of great concern to us, as it might affect both the project cost and completion date. We are working closely with administrators to resolve the situation as quickly as possible.”

Despite slipping over a month behind schedule due to technical problems encountered during the painstaking operation, it is still planned to be complete for the start of the 2004 academic year next October.

The steel superstructure of the student centre has been completed and work laying the concrete floors on the ground and first floors is also finished.