The construction sector, government and the wider UK population are reeling following Carillion’s liquidation in January. But at the same time, nobody in the sector is that surprised that a large main contractor has gone under.
Government is working with trade associations like BCSA to make sure subcontractors are informed, and to determine the immediate next steps as this particular mess is mopped up. Clients are working with the liquidator to get construction jobs started again and subcontractors, including steelwork contractors, are ready to make sure that the cranes on building sites across the country are working once more.
The calls for reform in the construction sector are welcome, and I’ve written about these issues before. The solutions include rigorous enforcement of payment terms, getting rid of supply chain financing that can leave subcontractors out on a limb, and dealing with retentions once and for all. Continue Reading →