Carillion liquidators set to earn £70m in fees

Grant Prior 5 months ago
Share

Accountants and lawyers managing the liquidation of Carillion are set to earn £70m in fees.

During the run-out of the process they will hand out £164m to subcontractors as work continues on some jobs.

The figures are contained in a National Audit Office report into the government’s handling of Carillion’s collapse.

Special manager PwC is set to receive a fee of £50m.

The Official Receiver currently forecasts that the collapse will cost the taxpayer £148m as total liquidation costs of £522m outweigh any income received from ongoing contracts.

The NAO report confirms that Carillion chiefs asked the government for £223m of help in January to keep the company trading.

It added: “Rather than provide this, the Cabinet Office decided it was better that Carillion enter into a trading liquidation, because it had serious concerns about Carillion’s business plans, the legal implications, potential open-ended funding commitments, the precedent it would set, and the concern that Carillion would return with further requests.”

The watchdog also criticised the government for not spotting financial problems at a key supplier sooner.

Amyas Morse, the head of the NAO, said: “When a company becomes a strategic supplier, dependencies are created beyond the scope of specific contracts.

“Doing a thorough job of protecting the public interest means that government needs to understand the financial health and sustainability of its major suppliers, and avoid creating relationships with those which are already weakened.

“Government has further to go in developing in this direction.”

Latest news

Bouygues profit warning over biomass plant problems

Two UK power jobs drag down results at group construction division
2 days ago

Site virtual reality swings London skyscraper planning appeal

48-storey Isle of Dogs tower secures planning at appeal
2 days ago

Gatwick Airport sets out £500m runway upgrade plan

Standby runway to be moved 12m to bring into routine short-haul service
2 days ago

Engie wins £195m Kingston Uni student halls revamp

Work to start on student accommodation upgrade next June
2 days 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

First iKozie micro-home community gets thumbs up

Sixteen micro-flats to be built in Worcester
2 days ago

Plans for £450m Leeds hospital expansion

A new children's hospital and day patient block will be built at Leeds General Infirmary
2 days ago

Tool theft hits half of construction companies

Project delays and cost overruns caused by crime wave
3 days ago

Betting Spy: Chelsea and Fulham to land double

West Londoners can both come good this weekend at 3/1
2 days ago

RG Group starts tallest building in Yorkshire

Landmark student skyscraper will rise to 37 storeys
3 days ago

Government calls for fire tests on high-rise spandrel panels

Spandrel panels now under the spotlight as fire spread risk in tall buildings
3 days ago

Surveyors report rising workloads but Brexit fears loom large

Workloads up in Q3 but credit squeeze is becoming a major issue
3 days ago

Voice controlled windows tint on command

Latest tech means you can talk to your windows
3 days ago

Suffolk council to renew £750m East of England framework

PQQs published next month for revamped public building framework
3 days ago

Police swoop on Romanian site slave labour gang

Eight arrests in east London as police target construction human trafficking
3 days ago

£248m awarded to reclad 135 unsafe housing blocks

Government releases first tranche of £400m recladding fund
3 days ago

Crest Nicholson sounds profit warning

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

Welsh ministers look to rebid £1.3bn M4 relief road

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

Bouygues confirmed for £250m Cavendish labs

Cambridge University signs contract for 354,000 sq ft physics complex
4 days ago

Balfour Beatty renews £2.1bn Scape UK civils deal

Contractor reappointed as sole supplier for infrastructure across the UK
4 days ago

Muirfield boss banned after creaming cash from failed firm

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

Ex-Bouygues director joins Speller Metcalfe

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

Warden Construction wins £26m Sheffield student job

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

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

Bleak & Veatch is also on board to deliver 4km of river defences
5 days ago

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

Estates in East London and Cardiff Bay to be reclad
5 days ago

New firm set up at same address as South Eastern Electrical

New business incorporated just weeks before M&E specialist filed for administration
5 days ago

Banks cut lending to construction firms

Post-Carillion squeeze in bank lending to construction
5 days ago

North Midland scoops £225m South West Water alliance deal

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

Metal Yapi wins major facade package from Mace

Specialist lands deal at Olympic park to clad residential towers
5 days ago

ISG wins £26m Wolverhampton Uni college rebid

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

Contractor services