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Carillion Liquidation – Free advice for suppliers & sub-contractors in Aberdeen

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Carillion Liquidation – Free advice for suppliers & sub-contractors in Aberdeen

Reviewed: 16th January 2018

The demise of Carillion, UK’s second largest construction company has sent shockwaves across the country, as the sheer scale of the knock-on effects this is going to have starting to be realised. Carillion held the contracts for several key projects all across Scotland. However, the fallout from Carillion’s liquidation is going to be particularly felt in Aberdeen and the surrounding area where Carillion were the lead partner of the much-anticipated £745 million Aberdeen Western Peripheral Route.

What this means for the bypass and what this means for the subcontractors chosen by Carillion to undertake the work, are two separate points. While the news of Carillion’s liquidation may impact the work to the bypass in the short-term, this project will undoubtedly still go ahead. However, this does not necessarily spell good news for Carillion’s sub-contractors and suppliers, as who will be tasked with completing the work is yet to be seen.

While Carillion were the lead partner on the project, this was a joint venture with two other construction companies working alongside them to deliver the bypass.

The Scottish Government has confirmed that a contingency plan is in place for the two remaining companies to deliver the project. This, however, is likely to be little comfort to the many sub-contractors and small businesses that were relying on the work provided by Carillion. Countless local contractor businesses are likely to be negatively impacted by the recent news in an already depressed economy.

It is estimated that 30,000 small businesses are owed money by Carillion, something which is set to have devastating consequences. With these invoices being left unpaid, businesses could quickly find their cash flow grinding to a halt, and their ability to keep up with their own financial obligations severely impaired.

If you are worried about the future of your business, or are concerned about where your next contract is coming from following the collapse of Carillion, you should seek expert advice as a matter of urgency. With four Real Business Rescue offices across Scotland, we are perfectly placed to help you and your business navigate these difficult times. We will talk you through all the options open to you, and suggest the most appropriate course of action for you.

We will do this by taking the time to understand your business, where the business is in its business life cycle and where it could be in the future. There are a range of business rescue, recovery, and restructuring methods out there, and the sooner you contact us, the more of these will be available to you. Real Business Rescue provide director advice online, over the phone, or in-person at one of our 55 UK offices or a place of your convenience.

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