- Let it burn, hire the contractors and workers to turn the outstanding plans into public sector projects
- Some Tory option? (Post below)
It’s not really just the Government contracts, though. The effect on the sector if it collapses is going to be… very bad.
not really into prog tbh
Not been the same since Fish left tbh
One of BSP’s best
More of a Bookman Old Style kind of guy.
Let it burn. Let all construction companies burn for blacklisting workers.
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.
Up the Khyber
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
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
Peston’s been saying the same over the last couple of days.
Consultancy margin will be 20% I reckon. Rest is peanuts
Sounds like the whispers might be right. They’re massive too
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.
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.
I’d imagine that my employers parent company will pick up a lot of the rail contracts if it goes back out.