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News » UK » Carillion was working on £5.7bn-worth of construction work » published 30 Jan 2018

Carillion was working on £5.7bn-worth of construction work

Carillion had 57 construction projects on its books at time of collapse with a total value of £5.7bn, including joint ventures, according to data compiled by Barbour ABI.

Rail projects were a particular speciality for Carillion Above: Rail projects were a particular speciality for Carillion

The £5.7bn total includes projects where spades have not yet hit the ground, such as its £1.3bn HS2 contracts, and much of the work – including HS2 – is in joint venture so cannot be attributed solely to Carillion. But it does not include framework agreements from which Carillion might reasonably have expected to benefit.

Ten of Carillion’s 57 construction projects were individually worth more than £150m, such as the Royal Liverpool hospital and an Army basing programme in Salisbury, worth £450m and £340m respectively, according to Barbour ABI.

Michael Dall, lead economist at Barbour ABI, said: “The sector where Carillion had the largest presence was infrastructure – road and rail projects were a particular speciality for the firm. In addition, Carillion were in the process of delivering two new hospitals and were also responsible for various school improvement projects. What happens to these projects is a matter for conjecture. If the reason Carillion went bust was due to under-bidding then it stands to reason that the financial terms will have to be renegotiated. There is no doubt this will happen but will it happen quickly enough to save the many firms in the Carillion supply chain?”

 

MPU

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This article was published on 30 Jan 2018 (last updated on 31 Jan 2018).

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