Ernst & Young was called in as administrators to the firm, which employs 220 staff, and its parent company Robison & Davidson (Holdings) Ltd.
Joint administrator Andrew 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."
Dumfries & Galloway Housing Partnership had a multimillion-pound contract with R&D to build new homes in Dumfries and Stranraer. DGHP director James Shirazi said: "We are very sorry to hear that R&D Construction has gone into administration, and we are especially sorry for their workforce. It is especially sad when it affects so many people locally, who we have worked very closely with over the last few years.
"Our contracts were well ahead of schedule and a high level of satisfaction was recorded with their work. The priority now for DGHP is to look to the future of our regeneration programme and we will be in discussions with their administrators in the next few days.
"We had been closely monitoring their financial situation and to be on the safe side we had already taken over the security of the sites to prevent any attempts to take materials, machinery and plant equipment off site."
Ucatt regional secretary Harry Frew said: “Its extremely disappointing to hear that R&D Construction Group has entered administration threatening hundreds of jobs. We hope that a buyer can be found and jobs preserved. Ucatt will be attending a meeting with the administrators Ernst and Young on Friday to establish what the future holds for our members.
"The impact of these potential job losses in Dumfries and Stranraer will be a major blow to workers and their families. It is imperative that everything is done to safeguard these valuable construction jobs."
Got a story? Email news@theconstructionindex.co.uk
