Chief executive Zara Lamont will stand down today before the client body is wound up on Monday.
Chairman Mike Roberts will remain chairman of the shell company and oversee meetings until the new body replaces the confederation.
Lamont said the confederation had faced severe financial problems and struggled to function on a month-to-month basis. She said its income was low compared with its overheads because of the lack of paying members.
Lamont said: "I was the biggest overhead the CCC had. It needed more members, especially if it was going to employ a chief executive like me – as I don't come cheap."
She added that its constitution was not attractive to the vast majority of clients that were already represented by other organisations, such as the British Property Federation.
Lamont had been on secondment to the confederation from Carillion. She will return to the firm on Monday. Lamont said it remained unclear at this stage what her role at the company would be.
Strategic forum chairman Peter Rogers said he had been involved in talks about restructuring the confederation. He said the new client body would be more representative, drawing on a wider mix of clients.
Rogers said he was keen for strong, wide-ranging client representation on the strategic forum to help deliver the government's agenda as set out by Sir John Egan. He said: "The restructured client body must be about the clients and the industry taking the lead and presenting solutions and improved performance to government."
A DTI spokesperson said: "We welcome steps to strengthen and broaden client representation in the industry and in the strategic forum."
Rogers said the new client body would be made up of three groups: an umbrella body uniting other client organisations, including the British Property Federation; a second tier containing specialist bodies like the British Council of Offices and the RICS; and individual clients such as BAA and one-off clients would form the third group.