This estimate came from Ferrier Hodgson, which was appointed as Killarnee Civil and Construction Contractors administrator following this company's $22 million collapse last month.

Killarnee's key work is a $120 million contract for the construction of LNG and condensate storage tanks which was awarded by key Gorgon project contractor CB&I.

According to The West Australian on Friday, the administrator was considering a deal to sell most of Killarnee's assets and remaining contracts to fellow contractor Central Systems - with Killarnee owner Paul Thompson making a sales agreement with Central not long before the administrator took over.

"The sale deal aside, Ferrier Hodgson advised creditors not to accept a deed of company arrangement proposed by Mr Thompson when they meet next week because it could not confirm a greater return than liquidation," the newspaper reported.

"The administrator recommended an adjournment until December."

Killarnee claims to be owed a combined $4.6 million by CB&I and construction company WHBO for the Gorgon and Technical Ammonium Nitrate Burrup projects in WA.

"It is also embroiled in a contract dispute with Downer EDI in which each side has filed claims of between $4 million and $5.6 million against each other," the newspaper reported.

Contract losses and an industry downturn were also blamed for Killarnee's collapse.