Gavin Construction has appointed administrators to see if it can continue trading, after the company ran into issues on a project in the state's north-west.
It is understood the company could be owed up to $2 million as the result of the collapse of one of its clients in Karratha.
Gavin Construction managing director Sean Gavin declined to comment when spoken to by Business News.
The company's projects in Karratha included a $5.4 million contract to build a state-of-the-art laundry for Perth company MCM Linen.
It was reported by the ABC in March that MCM had abandoned the venture, which cost $15 million to establish, after failing to win clients in the Pilbara.
Gavin's other recent Pilbara projects included the $18 million Baynton West Primary School, a $9 million distribution centre for Blackwoods, as well as the $3.4 million Karratha Youth Centre.