The Cabinet is due to meet today to discuss the continuing fallout from the collapse of infrastructure and construction giant Carillion.
The Wolverhampton-based company's top executives face investigation after the firm's demise put thousands of jobs at risk and saw the Government heavily criticised for its role in the debacle.
The listed group, which employs around 400 staff at its head office and a further 20,000 across the UK, went into compulsory liquidation as it struggled with a £900 million debt and £590 million pension deficit.
It led the construction of the Library of Birmingham, which opened in 2013, and has key contracts on the £700 million city centre Paradise project, the new Midland Metropolitan Hospital in Smethwick and tunnels on the high-speed rail line HS2.
It also has public sector or public/private partnership contracts worth £1.7 billion, including providing school dinners, cleaning and catering at NHS hospitals and maintaining 50,000 army base homes for the Ministry of Defence.
Staff have been told to go to work as normal this week and all the public sector contracts which Carillion held are expected to be protected.
Labour leader Jeremy Corbyn said the collapse was a "watershed moment" that should bring an end to "rip-off privatisation" of public services.
After attending a meeting of the Government's emergency planning committee Cobra last night, Cabinet Office minister David Lidington said efforts to deal with the crisis had "gone pretty well".
He said: "The message was that day one had gone pretty well, people were turning up to work, we had not had reports of any serious disruption to service delivery.
"But we also had a report from PwC, who are working as the special managers for the Official Receiver, that took us through the advice they are providing to concerned employees and contractors on their website and through their helpline."
A last ditch plea from Carillion to the Government to provide it with a £20 million lifeline fell on deaf ears over the weekend, triggering a compulsory liquidation to be overseen by PwC.
The company has suffered a string of negative headlines with the chief executive stepping down last summer after issuing a profit warning, shares have plummeted by more than 70 per cent over the past six months and it has breached its financial rules.
Mr Lidington told Parliament on Monday afternoon the Official Receiver would investigate the role of the company's former and current directors, warning they could face "severe penalties".
But he added that Carillion's failure would see "shareholders and lenders bear the brunt" of the pain, rather than taxpayers.
Shareholders will be wiped out and lenders including HSBC, Barclays, Santander and Royal Bank of Scotland are reportedly set to lose an estimated £2 billion as a result of the collapse.
There is growing anger at bumper payouts received by former chief executive Richard Howson.
He pocketed £1.5 million in salary, bonuses and pension payments during 2016 and, as part of his departure deal, Carillion agreed to keep paying him a £660,000 salary and £28,000 in benefits until October.
Liberal Democrat leader Sir Vince Cable said this was a "reward for failure that has to be looked into".