LISBURN-based building firm TAL Ltd, which employs more than 50 staff, has gone into administration.
Work has stopped on several contracts, although administrator James Kennedy said workers were being retained while negotiations take place with customers.
Construction Employers' Federation (CEF) managing director John Armstrong said it was a "devastating reminder" of the incredibly difficult circumstances that continue to face many firms within the local construction industry.
He added: "Workloads are short, margins are tight and industry confidence remains incredibly low.
"Indeed, in light of the ongoing political challenges at Stormont, this news reinforces the need for the Executive to pro-actively address the challenges that our industry faces.
"We hope that a positive resolution to TAL’s current administration can be found so that jobs can be saved as well as maintaining existing workloads for subcontractors and suppliers."
The firm has worked on major sports projects for Belfast City Council and last year was awarded the £1.15 million contract to build the new Macmillan Cancer Information and Support Centre at Altnagelvin Area Hospital in Derry.
In a report with the latest accounts, the company had warned: "The economic environment in which the group operates continues to be challenging, but the ongoing strategy of the business is to continue to target profitable contracts, maintain turnover and increase profit margins through cost containment."
TAL Civil Engineering Ltd continues to operate as normal and is the contractor delivering the Ballymena Public Realm scheme.
