Construction stops on scores of Carillion projects

Aaron Morby 9 months ago
Share

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

Carillion's problem Royal Liverpool Hospital PFI

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 three 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. A third project for J8-10 of the M20 was at price negotiation stage.

In joint venture with Kier and French contractor Eiffage, the firm had secured the HS2’s North Portal Chiltern Tunnels to Brackley; and the Brackley to Long Itchington Wood Green Tunnel South Portal (C2 and C3) packages, worth together £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.”

Balfour Beatty was also in joint venture on the loss-making the Aberdeen Western Peripheral Route, the £1.4bn A14 in Cambridgeshire and the £200m M60 Junction 8 to M62 Junction 20 scheme.

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 Glenigan.

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 and in Birmingham it iw working on several building projects

Other major jobs in progress

 

  • £60m One Chamberlain Square, Birmingham Paraduse Circus
  • £62m Midland Mainline improvement programme. Corby to London
  • £60m Lincoln Eastern Bypass
  • FARRS phase 2 link road to Doncaster Sheffield Airport
  • £10m Heltwate school and £7m Jack Hunt school in Peterborough
  • 21-storey Salford Central scheme flats
  • £16m Salford New Bailey build to rent scheme
  • Former Vaux Brewery site regeneration in Sunderland
  • London £91m Barts Square development
  • London Strand £25m flats contract at Arundel Court, Strand

Work started in the summer on major flats/hotel scheme on the Strand

  • £37m National Grid powerlines upgrade Canterbury
  • £38m overhead transmission line upgrade in Reading area
  • £23m Waverley station upgrade in Edinburgh

Latest news

Crest Nicholson sounds profit warning

Build rates to be slowed down as London and the south suffers from lack of buyers
2 hours ago

Welsh ministers look to rebid £1.3bn M4 relief road

Cost-saving plan to split 23km Costain/Vinci motorway scheme into three contracts
2 hours ago

Bouygues confirmed for £250m Cavendish labs

Cambridge University signs contract for 354,000 sq ft physics complex
2 hours ago

Balfour Beatty renews £2.1bn Scape UK civils deal

Contractor reappointed as sole supplier for infrastructure across the UK
3 hours ago

Muirfield boss banned after creaming cash from failed firm

Ex chairman gets nine-year director disqualification after siphoning off £880,000
3 hours ago

Ex-Bouygues director joins Speller Metcalfe

Martyn Chaplin joins the Midlands builder after 15 years with Thomas Vale and Bouygues UK
2 hours ago

Warden Construction wins £26m Sheffield student job

Work to start in February on 289-bed scheme in St Vincent’s Quarter
3 hours ago

Galliford Try JV starts £20m Burton-on-Trent flood defence job

Bleak & Veatch is also on board to deliver 4km of river defences
1 day ago

Boost your online presence – join the new Enquirer Directory

New site for suppliers and buyers will showcase their products, services and latest stories
6 months ago

Bellway sets aside almost £6m for post-Grenfell recladsd

Estates in East London and Cardiff Bay to be reclad
1 day ago

New firm set up at same address as South Eastern Electrical

New business incorporated just weeks before M&E specialist filed for administration
1 day ago

Banks cut lending to construction firms

Post-Carillion squeeze in bank lending to construction
1 day ago

North Midland scoops £225m South West Water alliance deal

H5O Alliance will be worth £25m-£45m a year to North Midland Construction
1 day ago

Metal Yapi wins major facade package from Mace

Specialist lands deal at Olympic park to clad residential towers
1 day ago

ISG wins £26m Wolverhampton Uni college rebid

New School of Architecture and Built Environment will be built at the former Springfield Brewery site
1 day ago

Staffordshire Uni submits plan for £40m skills hub

Site clearance to start in New Year for Spring 2019 building start
1 day ago

TfL and Pocket Living tie-up for cheap London homes

Cut-price flats to be built on TfL sites
1 day ago

Forecasters cancel 2019 construction rebound as orders fall

2019 construction growth forecast downgraded from 2.6% to just 0.6%
2 days ago

Worker loses arm in brick machine accident

Materials giant fined £200,000 after chargehand dragged into machine
2 days ago

Galliard Homes plans £500m Birmingham push

Housebuilder links-up with developer Apsley House Capital to build "London-style" apartments
2 days ago

Balfour confirmed for £85m London student scheme

Vine Street scheme will deliver 654 student beds across a 14 storey building
2 days ago

CEG submits plan for £79m Manchester resi scheme

21-storey mansion block planned next to Arndale Centre
2 days ago

£490m eastern area highways upkeep out to bid

Combined area 6 and 8 upkeep to be subject to 3-year service reviews over 15-year contract
2 days ago

Adenstar to pave way for £150m Sussex site

£15m infrastructure package to get underway in January
2 days ago

Alun Griffiths wants to meet new suppliers in South West

Meet the Buyer and recruitment event in Exeter: Register your interest now
3 days ago

Murphy cancels Christmas party as job cuts loom

Redundancies planned as slow down in growth predicted next year
5 days ago

Tideway boss to chair Construction Leadership Council

Andy Mitchell takes over from former Crossrail chief Andrew Wolstenholme
5 days ago

McLaren tipped for £120m Leicester City training complex

Planners give green light to stunning designs by architect KSS
5 days ago

Moda Living funding deal for seven build-to-rent jobs

Projects in Liverpool, Leeds, Birmingham, Edinburgh and Glasgow get green light
5 days ago

Yorkshire fit-out firm folds after 150 years

21 jobs axed as H. Waterhouse & Sons falls into administration
5 days ago

Contractor services