Space Management

Industry waves as Carillion collapses – what happens next?

Carillion’s collapse has left many wondering what impact it will have on them.

Carillion was a multinational facilities management and construction company headquartered in the UK. The organisation was Britain’s second largest construction organisation, employing 20,000 people in the UK and an additional 23, 000 people worldwide. Carillion delivered a diverse range of services to a large client group. Internationally, the organisation was a key stakeholder for Qatar’s 2022 FIFA World Cup construction. Carillion were also a large supplier of construction services to the Canadian government. In the UK, Carillion was an integral service supplier to the private and public sectors with over 450 government contracts:

 

  • Facility management, patient meal preparation, managing helpdesk requirements and fulfilment of engineering and maintenance work for the National Health Service (NHS)
  • Contributing to building smart motorways
  • Was a major contractor on HS2 high-speed rail project from London to Birmingham & Manchester to Leeds
  • Upgraded track and power lines for Network Rail
  • Major contractor on London’s Crossrail project
  • Management of infrastructure and homes for the Ministry of Defence
  • Conducted maintenance in half of all UK prisons

In addition, Carillion had a large footprint in schools and in the energy industry, building substations and infrastructure for the National Grid.

On 15 January 2018, Carillion announced they would be going into compulsory liquidation. The collapse will have implications throughout the UK as the company is one of the UK government’s biggest contractors. The organisation’s collapse will result in significant unemployment and will affect hundreds of subcontractors and small businesses.

There will be significant disruptions for customers engaging with areas Carillion operated in and through the supply chains Carillion were a part of. A spokesperson for British prime minister, Theresa May, said the priority moving forward was ‘to keep public services running’. To achieve this the Minister for the Cabinet Office, David Lidington, said the government would continue supporting public sector contracts, ‘The action we have taken is designed to keep vital public services running’. However, private sector companies will only have two days of government support.

Solutions and substitute companies are looking at how to limit the damage caused by the collapse. In the UK, the government could take some public services in-house while other firms may take on some of Carillion’s other contracts.

The Changing Workplace provides soft facilities management services (software built to support organisation manage data concerning their buildings, people and assets). Our powerful platform WebCoRE has overlapping capabilities enabling Corporate Real Estate (CRE) teams to optimise their portfolio through a continuous cycle of planning, managing, tracking and reporting. This management cycle promotes accuracy, insight and optimisation.

If your services have been, or will be, affected by Carillion’s collapse please contact us. We’ll be happy to demo WebCoRE for you and have your organisation up and running with little disruption to operations.

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