Carillion chasing claims of £260m before collapse

Aaron Morby 11 months ago
Share

Carillion bosses were pursuing or planning claims for over £260m on seven contracts before the firm collapsed.

Carillion hoped to recoup £43m in claims at the Royal Liverpool Hospital project

The extent of claims it planned to chase were revealed in the board’s business plan put to its banks and the Government in the board’s failed attempt to buy extra time with emergency funding.

This also revealed that it had written £1.1bn off its balance sheet due to legacy contracts, delays in settlements and PFI transactions.

The claims dossier opens an avenue for the Official Receiver, overseeing Carillion’s liquidation, to pursue although in practice claims are usually written off because they are difficult to pursue following corporate collapse.

Seven major contract claims in Carillion board’s sights

 

  • Midlands Metropolitan Hospital – £33m
  • Royal Liverpool Hospital – £43m
  • Aberdeen Western Peripheral Route – £40m
  • Battersea Power Station – £16m
  • PF2 Schools – £5m
  • Msheireb, Qatar – £97m
  • Toronto Transit Commission £28m

Total claims on 7 contracts – £262m

The claims were also being contested providing no real guarantee of the estimated claw-back.

According to the business plan the board believed it could claim £43m on the delayed Royal Liverpool Hospital PFI contract, including recovery of claims from third parties of £34m following problems with concrete beams on the project.

Its other legacy hospital, the Midlands Metropolitan Hospital, was targeted for completion in June 2019 because of problems with building services on the project.

The report reveals that the board was predicting it could recover an Aecom claim of £10m by June this year.

On its Aberdeen Western Peripheral Route three-way joint venture project Carillion said it hoped to recover £25m from Transport for Scotland by this summer and further cash of £15m from designers and insurance by the end of £2018.

Carillion also believed it could recover £16m from its phase one residential project for the Battersea PowerStation development, which was delivered nearly a year late.

On its downtown Doha project in Qatar, the board reported that it had agreement from Msheireb Properties for extension of time claims amounting to £97m.

Meanwhile the Government has revealed that it has already spent £150m on financing the wind down of Carillion.

The cash has been used by the Official Receiver to keep some services running, and for legal fees.

Latest news

Serious Fraud Office launches probe into North West sites

Series of addresses searched over suspected fraud on developments in Liverpool and Manchester
2 hours ago

Hitachi halts construction work at Wylfa nuclear site

Japanese giant fails to strike funding deal with UK government
7 hours ago

BAM wins £320 Scotland and North East railways deal

AmcoGiffen, Story Contracting and QTS also secure framework places
2 hours ago

Galliard and O’Shea team up for £130m Nine Elms scheme

Plan for over 260 homes on one of seven plots at former Royal Mail site
3 hours ago

20 consultants win £100m Homes England framework

Aecom, Atkins, Jacobs, Mace and WSP make new multi-disciplinary framework
3 hours ago

Buyer deposits repaid as Manchester’s tallest tower axed

54-floor St John's Place residential tower pulled in face of cooling demand
9 hours ago

Billionaire Warren Buffett targets UK construction insurance

Berkshire Hathaway Specialty Insurance enters market as contractors struggle for cover
9 hours ago

Skilled trades pay rates hit £1000-a-week in Midlands

Self employed workers enjoyed wage rises of 6.7% last year
10 hours ago

Kier boss leaves to become Rydon construction head

Mark Norris leaves operations director role at Kier after 13 months
1 day ago

Go-ahead for £60m Nottingham HMRC hub

Bowmer & Kirkland believed to be in line to build Unity Square offices
10 hours ago

Crooked bookkeeper stole £100k from cladding contractor

Court hears how mother and daughter used company cash to fund their lifestyles
1 day ago

£50m stands approved for Lords cricket ground

Builder ISG to start in August on new Edrich and Compton stands
1 day ago

Roof trusses fall on labourer

Darlington Council fined for poor site management
10 hours ago

Union demands “period dignity” on construction sites

Multiplex first contractor to sign-up with campaign for better site toilets
1 day ago

Boost your online presence – join the Enquirer Directory

New site for suppliers and buyers showcases products, services and latest stories
9 months ago

Van Elle profit warning after “challenging” quarter

Lower margin contracts drag down performance as restructuring continues
1 day ago

Balfour boss in Brexit blast at Chancellor

Leo Quinn highlights construction's fears in conference call with ministers
1 day ago

Wates wins £90m post-Grenfell reclad job

Work to start this summer on five tower blocks at North London's Chalcots Estate
1 day ago

Construction forecasters bet on delayed soft Brexit

Crystal ball gazers believe UK will avoid workload fall with sluggish growth in 2019
1 day ago

Plan for £300m Lincolnshire power station

Czech power firm plans energy from waste plant next to South Humber Bank power station
1 day ago

Fitzgerald returns Bovis Homes to record profits

Margins restored and completions up 3% after 18-month turnaround
1 day ago

Late payment bill boosts calls for project bank accounts

Second reading due as MP fights to protect subcontractors from Carillion-style collapses
2 days ago

Plant hire giant Hawk falls into administration

Administrators pledge to keep kit working on site as they look for a buyer
3 days ago

HS2 forces firms to use least polluting trucks and plant

Rail project raises bar to exceed London emission standards
3 days ago

Watkin Jones hits record profits as pipeline grows

Firm enjoys three-year pipeline of 24 student rooms and build to rent sites
2 days ago

South Eastern Electrical went down owing £4m to suppliers

Contracts sold by administrators to associated company SEE Rail
2 days ago

Carey wins £16m Stratford Waterfront civils package

Cladding and mechanical packages will come up for bid in next three months
2 days ago

Mace confirmed for £350m Paddington Cube

Erith, Keltbray, J Coffey and Getjar chase basement contract
3 days ago

Skanska Costain JV starts Euston Station HS2 demolition works

McGee will demolish two office towers over 10 months
3 days ago

Forrest collapsed owing £28m to unsecured creditors

Administrator warns even secured creditor banks will lose much of £17m they are owed
3 days ago

Contractor services