Construction stops on scores of Carillion projects

Private building and major Government infrastructure works contracts were thrown into disarray today following the collapse of Carillion.

NHS clients at two major hospital project already running over a year late in Liverpool and Birmingham now face the prospect of replacing the contractor on jobs that were beset with problems.

Kier, which was in joint venture with Carillion on two major smart motorway jobs, will now have to take them on alone or seek a new partner.

These include the first phase of the £335m M6 junction 13-15 improvements and the M20 junction 3-5 scheme worth around £92m due to start in March.

In joint venture with Kier and French contractor Eiffage, the firm had secured the HS2’s Chiltern Tunnels and Colne Valley Viaduct and the North Portal Chiltern Tunnels to Brackley packages, worth £1.3bn.

A Kier spokeswoman said: “We have put in place contingency plans for each of these projects and are working closely with clients so as to achieve continuity of service.

“Following today’s announcement and after a short period of transition for these contracts, we do not expect there to be an adverse financial impact on the Group arising from these joint venture contracts.”

Other building jobs around the country will be thrown into limbo after Carillion secured around £1.3bn worth of contracts over last year, according to information specialist Glengan.

Manchester will be one of the regions hardest hit. Carillion was working on the £75m Angel Gardens build to rent scheme for Moda and the first phase of £75m student halls for Manchester University at its Fallowfield Campus.

Carillion was also a key delivery partner on the Manchester City Airport commercial development scheme with Chinese backer Beijing Construction Engineering Group.

In Leeds, the firm was delivering the new cycleway and had just been selected to build the £115m East Leeds Orbital Route.

Other major jobs in progress

£60m One Chamberlain Square, Birmingham Paraduse Circus

£62m Midland Mainline improvement programme. Corby to London

£10m Peterborough’s Heltwate school

London £91m Barts Square development

from Construction Enquirer http://www.constructionenquirer.com/2018/01/15/construction-stops-on-scores-of-carillion-projects/

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