Carillion


#1
  • Let it burn, hire the contractors and workers to turn the outstanding plans into public sector projects
  • Some Tory option? (Post below)

0 voters


#2

It’s not really just the Government contracts, though. The effect on the sector if it collapses is going to be… very bad.


#3

could see my boss’ firm go under this :expressionless: we get most of our work of one of their big partners in hospice building.


#4

not really into prog tbh


#5

Not been the same since Fish left tbh


#6

very funny


#7

One of BSP’s best


#8
  • Kayleigh
  • Lavender

0 voters


#9

More of a Bookman Old Style kind of guy.


#10

Let it burn. Let all construction companies burn for blacklisting workers.


#11

“There are also big worries for an estimated 30,000 smaller firms which have been working on Carillion projects in the private sector.”

Thirty thousand.

had no idea the knock-on effect could be that big. Plus the bigger contracts it had with Balfour, Speedy etc…jesus.


#12

Thirty thousand.

Can’t speak to their service operation side, but construction work is usually sub-contracted to the hilt. In most projects the developer assumes the financial risk of the project (and thus the reward) but the day-to-day is run by multiple smaller firms.


#13

I think the service side was solid and it was the construction aspect which brought them down for the most part…

There’s a piece in the Standard today which says that Carillion employed reverse factoring, meaning the banks paid their suppliers on its behalf in return for repaying the banks at a later date. So if this one billion figure is the overhang from that, and the lenders obviously won’t be getting their money back…

what a mess.


#14

#15

Up the Khyber


#16


#17

The service side is ridiculously low margin however bonuses were based on turnover not profit so management were financially rewarded for pricing at a loss to win the work


#18

Still seems to be higher margin than the construction side? https://www.constructionnews.co.uk/companies/contractors/carillion/carillion-construction-margins-fall-in-2016-results/10017808.article

Yeah, read an interesting FT article on carillion undercutting bids to win work. Basically (well, actually) said it was a ponzi scheme; getting cash in by any means to pay previous contractors and creditors.


#19

I can’t access that. I’d doubt it, there’s a lot more risk of penalties and losses in construction,which they seem to have been hit by, but the actual work is profitable
I work a little bit in facilities management and the standard practice is to make a loss on the scheduled maintenance and make up for it on repairs and replacement work. If you take one on with a well maintained asset book your fucked

I’m hearing worrying rumours about interserve too


#20

Peston’s been saying the same over the last couple of days.