Carillion

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

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

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not really into prog tbh

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Not been the same since Fish left tbh

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very funny

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One of BSP’s best

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  • Kayleigh
  • Lavender

0 voters

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More of a Bookman Old Style kind of guy.

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

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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.

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Up the Khyber

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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

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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

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

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Consultancy margin will be 20% I reckon. Rest is peanuts

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Sounds like the whispers might be right. They’re massive too

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Yup, Interserve just about managed to stave off a massive sell-off of its stock the other week, largely because Carillion going under increased the prospect of them and the likes of Serco cherry-picking their most profitable contracts.

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You’re right, but it’s pretty staggering that a company of Carillion’s size didn’t operate all these contracts under subsidiaries. I think it’s a terrible practice (allowing larger companies to fold loss-making parts without any risk or penalty to the parent company), but it’s standard practice in large, long-term contracts, especially PFIs.

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I’d imagine that my employers parent company will pick up a lot of the rail contracts if it goes back out.