Modular construction firm Elements Europe went into administration owing hundreds of suppliers £8.7m.
A report from administrators at Interpath revealed that two loss-making major contracts, which were plagued with delays and water issues, impacted the firm.
Work ceased immediately on the projects in Hackney and Birmingham when Interpath was called in on 4 June.
The Telford-based firm specialised in offsite volumetric design and manufacturing of room modules and bathroom pods for use in residential developments, student accommodation and hotels.
But it branched out in 2021 to build a 23-storey hotel and office complex in Hackney and 555 apartments and townhouses in Birmingham.
The Hackey project has since been sold for £100,000 to the real estate division of its majority shareholder GS.
In a statement, joint administrators Sam Birchall and Steve Absolom said the firm suffered “significant trading losses” over the past three years of £80.6m, “primarily due to cost overruns and water ingress defects on various projects”.
They said the company had only remained solvent prior to its administration due to an unsecured loan of £71.8m from GS.
At the time of its collapse it had £2m cash in bank and owed £8.7m to more than 200 subcontractors.
Of its 217 employees, 199 have now been made redundant, four have been TUPE-transferred to the Hackney project and 14 have been retained to help with winding down the company, the report said.
It owes a total of £108m, including £196,000 to its staff. The administrators said they were expecting a claim of £400,000 from HMRC.
“Sadly, Elements Europe has not been immune to the headwinds facing the construction sector,” Birchall said in an earlier statement.
Contractors specialising in modern methods of construction have experienced mixed fortunes in recent years.
Northern Ireland-based Jans Offsite Solutions went under in May and Scottish affordable housing specialist Connect Modular appointed administrators in January.
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Nicola Harley