Carillion chasing claims of £260m before collapse

Aaron Morby 6 years 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
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

Police ban mobile cranes from roads over Easter

Plant hire bosses livid as forces across the country extend abnormal load embargoes
13 hours ago

Director jailed for exposing workers to asbestos

Ten tonnes of asbestos insulating board stripped out by unqualified workers
17 hours ago

Site labour rates start rising again

Industry's biggest payroll firm says "it feels like things could be turning round"
21 hours ago

Council finds extra £33m for Buckinghamshire link road

South East Aylesbury Link Road costs soar by nearly 30% to £147m
21 hours ago

Quartet win £490m North West & Central railway works deal

Skanska, Kier, Octavius Infrastructure and Story Contracting bag major projects deal
21 hours ago

Unite Students plans first major mixed-use scheme

Developer's first mixed BTR and PBSA project to be built in Edinburgh
2 days ago

Galliford Try names new finance director

Rentokil's Kris Hampson joins contractor to replace Andrew Duxbury
22 hours ago

Council boss hits out at bat threat to £274m road job

Natural England could scupper scheme due to be built by Ferrovial
22 hours ago

Hydrogen-fuelled diggers to be allowed onto highways

Government to raise barrier to widespread use of hydrogen fuelled plant in construction
2 days ago

Plans in for £118m Government hub in Darlington

Work pencilled to start later this year on new home for 1,450 civil servants
2 days ago

New contractor highlights Henry Construction jobs on website

New firm lists jobs by failed contractor to show its experience
2 days ago

Contractors line up for £2.6bn Anglian Water AMP8 deal

Eight big names land places on pioneering @one Alliance
3 days ago

McAleer & Rushe bags first major later living project

Work to start this month on 167-flat Royal Tunbridge Wells project
2 days ago

Kier starts first all-electric prison houseblock job in Kent

Next-generation fully electric T60 prison houseblock to be built at HMP Elmley
2 days ago

Keepmoat sees better times ahead in housing market

Profits dip in 2023 despite construction of record number of new homes
2 days ago

Vistry signs partnership deals for 1,900 mixed tenure homes

West Sussex former airfield and Newmarket sites to break ground
3 days ago

Turnover at Wates tops £2bn for first time

Construction division exceeds £1bn turnover as average contract value hits record high of £48.3m
3 days ago

L&G looks to sell Cala Homes in exit from house building

Insurance giant reported to be preparing to offload 3,000 homes-a-year developer
4 days ago

Multiplex profit almost trebles as margin hits 5.5%

Revenue jumps 20% to £675m as big London scheme complete
3 days ago

TopHat puts plans to open huge Corby factory on hold

Advanced manufacturing facility was due to employ 1,000 people
3 days ago

Laing O’Rourke lands Calderdale hospital job

Enabling works to start by the end of this year at West Yorkshire site
3 days ago

Go-ahead for £475m Sunderland film and TV studios

Work to start this year on first phase Corwn Work studios
3 days ago

Willmott Dixon set for £20m Stockport Community Hub

Planning decision expected in June on Marple leisure and health clinic project
3 days ago

Police hunt for blundering dumper truck thief

Raider drove into a fence before getting stuck on a bank
3 days ago

Beattie Passive files administration notice

Passivhaus pioneer has been in business for more than ten years
4 days ago

McAlpine set for £50m space and tech centre

Northumbria Uni sign pre-con deal for new satellite research hub
4 days ago

VolkerFitzpatrick seals £34m Kent road viaduct

Work to start next year on Sturry Link Road near Canterbury
4 days ago

Eight win £600m Scottish civil engineering framework

Balfour, Farrans, Graham and Morgan Sindall win major works lot
4 days ago

Site engineer crushed to death by excavator

22-year-old victim died just months after graduating from university
6 days ago

NG Bailey fined £135,000 after hospital site death

Worker died after striking overhead beam while navigating a mobile elevating work platform
6 days ago

Contractor services