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22 former Carillion FM contracts now reallocated

04 May 2018

With the impact of the collapse of Carillion continuing to be felt, it was recently announced that 22 of its former FM contracts have been handed to different outsourced providers.

All of the 22 included the involvement of infrastructure investment business International Public Partnerships (IPP), leaving two more contracts to be reallocated, according to

Fourteen of the 22 service contracts have been resolved on a permanent basis, with the remaining eight expected to be made permanent in the near future.

Many of the other contracts formerly handled by Carillion have been passed on to other providers, but the major impact the company's failure had on employees, clients and its extensive supply chain continues to be seen.

The company was previously involved in 450 government contracts, leading to questions asked regarding why these were continued to be awarded when the details of the Carillion difficulties began to emerge.

Two of its major hospital construction projects have yet to be passed to new contractors, although Skanska is expected to take on the Midland Metropolitan Hospital project and Laing O'Rourke the favourite for the Royal Liverpool Hospital contract.

Difficulties continue to be experienced by the company's former supply chain, thought to include up to 30,000 businesses.

Although emergency funding has been set aside by some financial institutions, reports of companies failing due to non payment by Carillion continue to emerge.

The collapse of the business has resulted in calls from the PFM Editorial Advisory Board for better procurement processes and more sustainable business processes adopted throughout the FM sector.

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