Advice for subcontractors affected by the Carillion liquidation

Subcontractor Advice - Which Carillion projects are affected

This week the construction world has been rocked by the collapse of Carillion, one of the UK’s biggest building firms. A major supplier to the government of private finance initiative (PFI) construction contracts, Carillion has been forced into compulsory liquidation after its debts reached a staggering £1.5 billion.

Carillion employs over 43,000 people worldwide with over 20,000 of these being in the UK, along with countless suppliers and subcontractors, many of whom rely on Carillion contracts as their major, or only, source of income. So the question is now, what is going to happen to those whose livelihoods rely on Carillion and also how is the collapse going to affect the over 450 projects on which Carillion was currently working?

Some of Carillion’s biggest projects are listed below, and if you or your company worked with or on any of these, or any other Carillion project, you may be wondering what to do next?  Real Business Rescue is the UK’s leading business recovery firm and can provide you with a free and immediate advice to discuss the best options for your business moving forward. Many subcontractors run their own limited companies which are now facing potential insolvency due to the ripple effect caused by non-payment. The most important thing that you as a Carillion supplier or subcontractor can do is to meet this situation head-on and take professional advice as soon as possible.

HS2 High Speed Rail Line

Carillion won a large part of the contract to build the new HS2 high speed rail line in a £1.4 billion deal. The project, of which Phase One: London to Birmingham is due to be completed by 2026, aims to eventually link eight major cities in the UK with a new and dedicated high speed rail link.

Aberdeen Western Peripheral Route

This 58km bypass route is designed to ease congestion in Aberdeen and improve transport in general in North East Scotland. The total project is estimated to cost £745 million and the first phase from Balmedie to Tipperty is due to open in the winter of 2018/19. Carillion is one of the main contractors along with companies Balfour Beatty and Galliford Try.

Royal Liverpool University Hospital

This £335 million project will see a new 13 story super hospital constructed to serve Liverpool and Merseyside. The new hospital was due to open in summer 2018, although this may be delayed, although not entirely due to the collapse of Carillion.

Paradise Circus, Birmingham

This major project will see the redevelopment of 1.8 million square feet of Birmingham’s city centre, including up to ten new high quality buildings offering offices, shops, bars, cafés, restaurants and a hotel. The project will take up to 11 years to complete and cost approximately £500 million in total.

Rotherham-Sheffield Tram-Train

This pioneering project will see the linking of the existing train and tramlines between Rotherham and Sheffield city centre. New purpose-built tram-trains will be able to run on both types of lines allowing passengers to make a single journey. The £15 million project is due to open in 2018, after a series of much publicised delays hampered progress.

Midland Metropolitan Hospital

This £558 million project to construct a new state-of-the-art hospital is due to open in spring 2019. With 669 beds and 13 operating theatres, the hospital will substantially replace emergency services currently provided at City Hospital in Birmingham and Sandwell Hospital.

Airport City, Manchester

The £800 million expansion of Manchester Airport to create ‘Airport City’ will result in the development of over 5 million square feet of offices, hotels, advanced manufacturing, logistics facilities, hybrid and ancillary retail space.

East Leeds Orbital Road (ELOR)

Part of a £116 million project designed to improve transport in and around the East Leeds area, the East Leeds Orbital Road will be a 7.5km road linking junction 41 of the M1 to the existing outer ring road at Red Hall. The project is due to be finished and in operation by the end of 2021.

Bart’s Square Development, London

This 3.2 acre site close to the City of London will eventually comprise of 10 apartment buildings, two commercial offices and a number of retail units. With the first phase due to be open by mid-2018 and the project to be fully completed by 2019, this £91 million development represents one of Carillion’s largest residential projects in the UK.

Edinburgh Waverley Station Platform Extensions

To facilitate the introduction of new longer, faster and greener electric trains between Edinburgh and Glasgow and on the East Coast main line, platforms 5, 6 and 12 will be extended along with associated upgrade works, in this £23 million project.

Lincoln Eastern Bypass

This £99 million project will see a new 7.5km stretch of road being built between the A15 Sleaford Road and the A158 Wragby Road on the outskirts of Lincoln. Work began in December 2016 and is due to be fully opened by October 2019.

M20 Smart Motorway Upgrade

A 10.5km stretch of motorway between junctions 3 and 5 of the M20 will be upgraded to an ‘All Lanes Running Smart Motorway’, in a £92 million project that is proposed to be starting in March 2018 and finishing in January 2020.

If you are a Carillion subcontractor or supplier for any of these projects – or any others – contact Real Business Rescue today for free and confidential advice. We can also offer a free same day meeting with 101 national offices to talk through your concerns and explore your practical options for recovery and turnaround.