Ex Carillion boss Howson blames Government for collapse

Grant Prior 4 days ago
Share

Former Carillion chief executive Richard Howson has slammed Government payment practices and their part in the contractor’s collapse.

A letter from Howson has just been published by the Parliamentary enquiry into the failure of Carillion.

In it he attacks the Government for delaying payments and disputing additional amounts on complex contracts.

Howson said: “Carillion in my time was constantly chasing up its Government and public sector customers to agree such additional amounts, despite the fact that such amounts had arisen because those customers had failed to adequately understand the size of their estate and had failed to administer the contract between the customer and Carillion in a fair and timely manner.

“Therefore, these amounts should never have been disputed because they flowed from the pricing structure in the contracts and the terms and conditions within the contract relating to change management.

“At the time of my departure substantial amounts were properly due to Carillion under the contract from Government, or from Government-owned or majority-owned entities on a range of contracts.

“I understand from concerns raised with me by senior members of the Carillion team present at the point of the liquidation that similar large amounts were still outstanding.

Howson said Carillion never took legal action against the Government for fear of losing future work.

He said: “Government and the wider public sector failed to provide adequate data and threatened to strike out the company as a contender for future work if Carillion had pursued its claims against the Government by the threat of litigation.”

 

Latest news

Plans in for final phase of £1bn Chelsea Barracks scheme

Last phase includes 126 affordable homes, and separate sports and medical centres
41 mins ago

Joiners injured in temporary access platform collapse

Court hears how two workers plunged seven metres through unsafe platforms at hospital site
26 mins ago

Green light for £50m Portsmouth Uni sports centre

Sports hub is the first project in a £400m University upgrade plan
14 mins ago

Wates wins £161.5m Wembley resi blocks deal from Quintain

Latest deal is Wates largest ever award on a single site
3 days ago

Construction’s most considerate contractors win ultra site awards

Latest initiative rewards highest industry site standards and supply chain collaboration
37 mins ago

Boost your online presence – join the new Enquirer Directory

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

Go-ahead for 37-storey Leeds student tower

Work to start before the end of this year on landmark student tower
3 days ago

Construction degrees come under fire from students

Students claim courses fail to prepare them for life in the industry
3 days ago

McAlpine to start £30m Manchester biomedical hub

Work to start in September on Citylabs 2.0 building project
4 days ago

Roofer in six metre plunge on to solid concrete floor

Court hears how worker suffered multiple fractures after plunge on refurbishment job
3 days ago

Cost of industry skills cards set to rise in September

CSCS leaders confirm 20% price rise per card to £36
4 days ago

£300m Bristol Uni campus approved

Work due to start on Temple Quarter Enterprise Campus early next year
3 days ago

Crossrail’s Sir Terry Morgan to lead HS2

Morgan replaces David Higgins as HS2 chairman next month
3 days ago

Shake-up in cladding fire tests to cut wait times

New testing service launched as current capacity swamped post-Grenfell
4 days ago

£25m A55 improvement scheme gets green light

Contractor to be named shortly for 2.2km stretch of the A55 at Abergwyngregyn
4 days ago

Galliford Try starts £43m central Birmingham resi job

Works starts on three blocks of luxury flats at Windmill Hill
4 days ago

Ex Carillion boss Howson blames Government for collapse

Former chief executive attacks public body payment practices
4 days ago

Winners named for £12bn Government FM framework

Forty seven firms including 10 SMEs bag public sector FM places
5 days ago

Buckingham Group hits record profits for fourth year

Business gears up for HS2 work and sport and leisure division expansion
4 days ago

Bid race for £50m new M11 Harlow junction

Junction and road improvements to allow further expansion of Harlow
4 days ago

Costain/Galliford Try to start £373m M1 upgrade next month

Firm to start delayed 23-mile smart motorway upgrade in Northamptonshire
4 days ago

Wates looking to work with new North West subcontractors

Wates Living Space and Constructionline hosting Manchester Meet the Buyer event: Register now
4 days ago

Gas fittings cost cutting put college students at risk

HSE probe finds cheaper fittings were used on Royal Veterinary College upgrade
4 days ago

Vinci confirmed for £75m Trafford Centre upgrade

Construction to start later this year on revamp on Manchester shopping centre
5 days ago

Skanska UK profits tumble as margin squeezed to 0.8%

Profit falls for second year running as revenue rises to £1.8bn
6 days ago

Green light for Cheesegrater 2 in City of London

56-storey skyscraper will be third tallest building in the Square Mile
6 days ago

Caledonian tops £300m ‘modular C’ schools framework

Partners revealed for ESFA secondary school replacement programme
5 days ago

Barratt ups annual completions by just 184 homes

Better than hoped central London sales help deliver record £835m profit
5 days ago

Interserve wins £15m Liverpool neonatal job

Work to start on 60-week contract in September
5 days ago

Plans in for £100m Liverpool marina resi scheme

More than 550 new waterfront homes planned at Brunswick Quay
5 days ago

Contractor services