Friday 14 December 2018

Carillion impact felt far and wide

Several firms have been working on joint ventures with Carillion.

Carillion crisis
Carillion crisis

By Ravender Sembhy, Press Association

The knock-on effect of Carillion’s collapse is being felt across the outsourcing sector, with several firms outlining the impact.

:: Galliford Try said Carillion’s collapse has left a £60 million to £80 million hole in the funding of the Aberdeen Western Peripheral Route road project in Scotland.

Galliford and remaining joint venture partner Balfour Beatty will now complete the £550 million contract and pick up the shortfall.

:: Balfour Beatty, meanwhile, is predicting a £35 million to £45 million cash hit from the saga, linked to three joint ventures: the Aberdeen Western Peripheral Route, the A14 in Cambridgeshire and the M60 Junction 8 to M62 Junction 20 scheme.

However, it pledged to work customers to meet its contractual commitments.

:: Rival Kier Group said it has contingency plans in place for its joint ventures with Carillion, adding that it does not expect to take a financial hit.

Kier currently operates joint ventures involving Carillion on HS2 and the Highways England smart motorways programme.

:: Construction firm Morgan Sindall, which is working on a number of projects and joint ventures with Carillion, is “committed to completing these projects as planned”.

The group added the impact is “not expected to be material”.

Press Association

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