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22 Carillion facilities management contracts transferred to new suppliers

As the dust continues to settle on the collapse of construction giant Carillion, it has been revealed that 22 of its facilities management (FM) contracts in the UK have changed hands.

Infrastructure investment company International Public Partnerships Limited (INPP) broke the news, revealing that 22 of the 24 FM contracts it had stakes in had moved to new suppliers.

INPP said that 14 of these were on a permanent basis, with the other eight expected to become permanent in the near future.

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Carillion’s collapse sent shockwaves through the industry, not least because of the enormous volume of work on the company’s books.

The industry giant had around 20,000 employees in the UK, 450 governmental contracts and major construction projects across the country, including High Speed 2 and the redevelopment of Battersea Power Station, maintenance contracts for 50 UK prisons. It also had operations in the Middle East, the Caribbean and Canada.

Two major construction contracts remain subject to uncertainty, both involving hospitals.

The Royal Liverpool Hospital contract and the $478mn Midland Metropolitan Hospital agreement are yet to be resolved, with redundancies on both already announced.

It is thought that Skanska will take on Midland Metropolitan Hospital, with Laing O’Rourke set to take over the Royal Liverpool job.

Carillion’s collapse also had a huge impact on the enormous supply chain network serving its various projects, with emergency funds set up by the likes of Lloyds to help ease smaller suppliers through the crisis.

It is thought that around 30,000 businesses are owed a collective sum of more than $1.37bn.


Construction Global Weekly