Sweden's Work Environment Authority announced on Wednesday that it was shutting down a building site in Hjorthagen, northern Stockholm.
Around 9am on Tuesday, a 50 tonne wall collapsed on the scene killing two workers, leaving a third in a critical condition. The third builder is now in a stable condition at the Karolinska Hospital.
The authority said that the site could not reopen until it was able to guarantee a safe environment.
The site, run by Swedish power company Fortum, employs around 800 people who were sent home after the collapse.
Since 2010 at least 200 people have died of injuries sustained at work in Sweden, including 42 deaths in the construction industry.
Around 800 people work on the site. Photo: TT