- 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.
could see my boss’ firm go under this we get most of our work of one of their big partners in hospice building.
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.
“There are also big worries for an estimated 30,000 smaller firms which have been working on Carillion projects in the private sector.”
had no idea the knock-on effect could be that big. Plus the bigger contracts it had with Balfour, Speedy etc…jesus.
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.
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.
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
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.
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.