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The collapse of Carillion should be of concern to everyone…

17/01/2018

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Carillion…

 

The collapse of Carillion should be of concern to everyone – not just those with links to the construction sector. We will all be affected. Hot on the heels of the Hackitt Review – what more evidence do we need that the culture of construction, the structure of contracts and the way that contracts are awarded needs to change. Quality stands the test of time and always wins when the long term view is taken. Rather than repeat, I am forwarding on Build UK’s latest information notice which has important information for all those affected, with details of legal support for members. SPRA would also like to hear directly from any members who are being, or will be adversely affected by the collapse of Carillion.

 

BUILD UK response on Carillion and support – Following Carillion’s liquidation, Build UK has been representing the industry to Government and in the media, as well as providing support to those members directly affected.

 

Support for Members (This includes SPRA members)

 

We are currently working with Wedlake Bell, which provides the Build UK Legal and Contractual helpline, to produce a factsheet for those members that have outstanding payments with Carillion and this will be available later this week. In the meantime, you may wish to advise them to take the following steps:

  • Visit PwC’s dedicated website or call 0800 063 9282
  • Begin collating the following information for each project so that it is available should you be asked for it:
  • Contract documents
  • Outstanding invoices
  • A list of any plant and machinery currently on site with proof of ownership.

 

Leading the Industry

 

Build UK attended a meeting with the Secretary of State for Business, Energy and Industrial Strategy on Monday evening, raising the industry’s concerns about the risk of a domino effect in the supply chain and the need for Government to extend support for private sector projects. Suzannah Nichol has also had a strong presence in the media, including BBC News, The Guardian, The Telegraph and Newsnight.

 

We will continue to highlight that the construction business model needs to change as current operating margins are not sustainable for the level of risk that companies are taking on.

 

Gathering Information

 

To ensure that we are able to support Build UK members and provide information to the Government on the impact on the supply chain we are looking to understand:

  • Specific challenges with any Carillion projects e.g. where sites are closed
  • The amount(s) that businesses are owed and the % of turnover this represents
  • Other impacts on business e.g. staffing levels, ability to fulfil other contracts.

Please send any information, which will be treated in the strictest confidence, to info@BuildUK.org

 

Source: Cathie Clarke SPRA CEO, Build UK