While GDP as a whole fell by 0.1% in the three months to March, output from the construction sector fell by a huge 6.9%.
Michael Levack from the Scottish Building Federation said the figure was evidence of a crisis.
He said: "The industry's performance has slumped so far that we have now returned to the levels of output recorded in mid 2009, when the impact of the recession was at its deepest. Surely that has to be considered a crisis in Scottish construction by any measure."
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CBI Scotland Director Iain McMillan said the drop was "especially concerning".
He said: "Whilst the statistics show that certain industries appear to have grown in strength during the quarter in question - with output in the production and services sectors on the rise, for example - the 6.9% drop in construction output is especially concerning."
Mr McMillan conceded that the figures reflected crisis in the Eurozone, but urged the Scottish Government not to use the global economic downturn as "an excuse to dismiss today's news".
He said government must invest in skills and infrastructure, an especially timely call after news that construction infrastructure projects have fallen, particularly in the public sector.
Mr Levack from the SBF finished by adding his voice to calls on the UK Treasury to release £400m in direct capital spending and kick-start stalled shovel-ready development north of the border.
He said: "Such a dramatic slump requires radical action to turn things around."
(NE/GK)
