Construction workers warned their jobs could be in jeopardy

A Tayside firm may be forced to cut jobs in the run-up to Christmas.

Kilmac Construction has sent letters to workers informing them that their positions could be at risk.

The firm, which has offices in Dundee and Perth, said its hand was being forced by a downturn in the industry.

Bosses said they have been unable to secure a number of vital contracts.

The letter tells staff to expect a final decision on whether jobs will be cut by the end of the month.

Richard Kilcullen, who cofounded Kilmac with business partner Athole McDonald in 2004, confirmed the company was considering its options, but declined to comment further.

Kilmac – which led the redevelopment of Perth’s Mill Street – is not unique in struggling in the industry.

A report from accountancy firm Henderson Loggie published recently showed construction firms’ profit margins were shrinking across the country.

Figures published at Companies House show Kilmac generated £388,000 profit in 2014, dropping to £174,000 the next year.

The firm posted a loss of £4,700 in 2016 and has not published data on its income for last year.

Alison Henderson, chief executive of the Dundee and Angus Chamber of Commerce, said smaller construction firms were facing a “challenging” marketplace.

She said: “The construction industry is one where really large companies can afford to trim their margins when bidding for contracts, and that can have an impact on the smaller firms.”