Following the collapse of construction giant Carillion, employees have been told they should continue to turn up for work and will be paid as normal.
Carillion, which is involved in major projects including the HS2 high-speed rail line and Government contracts including services for hospitals, schools, prisons and transport, went into liquidation today (Monday, 15th January) leaving thousands of jobs under threat.
Carillon are also responsible for the construction the £290 million A6 to Manchester Airport Relief, as a joint venture with Morgan Sindall, to improve access across south east Manchester and east Cheshire.
The 10km dual carriageway was due to open to traffic by autumn 2017, after two and a half years of construction works. However in April 2017, a spokesperson from Stockport Council, who are leading this major transport project with its partners Cheshire East Council and Manchester City Council, announced it had been delayed until Spring 2018 due to heavy rainfall.
Today, Carillon said "Unless advised otherwise, all agents, subcontractors and suppliers should continue to work and provide goods and services as normal, under their existing contracts, terms and conditions."
Pam Smith, Chief Executive of Stockport Council, said: "Carillion PLC is the UK's second-largest construction, facilities and property management company and employs in the region of 43,000 people globally. They are a key national supplier to public services and are in a current state of financial crisis.
"We have this morning received confirmation that Carillion PLC have been placed into liquidation.
"The Council entered into a partnership agreement with Carillion AMBS in 2014 for a period of ten years to deliver property services including Estate, Asset and Facilities management and to work together to deliver a number of key development services. Carillion PLC also work on a number of projects with schools and are involved in the partnership to build the A6MARR.
"Carillion staff were told this morning at 9am to continue working on contracts in the usual way. Senior Council officers have discussed the situation directly with Carillion directors today to consider how we ensure the smooth transition of continued services. The Council will implement the detailed contingency plans that have been developed and are in place in the event of such news.
"The contingency plan focuses on a number of key areas, including urgent actions that may need to be taken by the Council as the details of the insolvency process takes effect.
"For any urgent enquiries please contact the Council's Estate and Asset Management service on [email protected]".
Comments
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"We're completing this project as planned and will be working closely with our customers and other stakeholders to ensure continuity of service".
Sounds like they will be taking up the slack then.
This was total bad management by Carillion an its Directors.Not the Government.They gave a contract out for £300mill. Its the same with Liverpool hospital and Glasgow motorway running way behind schedule. Directors should be prosecuted. Baz
The A34 has been coned with 30mph limits for over 18 months, but you rarely see construction in action as you crawl along in daily traffic gridlock. To make matters worse, in a development money orgy, Cheshire East has approved thousands of new houses on greenbelt around the A34 bypass without any attention to the infrastructure pressures this will bring. Cheshire East and Stockport Council are failing the public they serve and need to be brought to account.
We seem to have had the works going on for ages but someone reminded me that they started late Summer 2014. I stand to be corrected.
There seems to be an issue towards the Poynton & Hazel Grove end of things where an earthworks built up to help protect against traffic noise appears to be about 1 metre under the projected height. I don't know which of the partner contractors was responsible, and I haven't yet seen any corrections, confirmations or denials.