THE collapse of Carillion, one of the UK’s largest construction and infrastructure management firms, has caused major difficulties for Network Rail and a number of other rail-related projects.
The compulsory liquidation of the group in January put thousands of jobs at risk and raised fears major rail projects such as High Speed 2 (HS2) Phase 1 and electrification schemes could be delayed while replacement contractors are found.
Carillion employed around 19,500 in the UK, many of whom are engaged on Network Rail contracts.
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It was also a partner in the CEK joint venture with Keir and Eiffage, which secured £1.34billion of contracts to build sections C2 and C3 (North Portal Chiltern Tunnels to Brackley and Brackley to South Portal Long Itchington Wood Green Tunnel) of HS2 Phase 1 last year.
By mid-January, Network Rail had come to an agreement with Carillion’s official receiver, PwC, to guarantee the wages of Carillion Construction Ltd staff working on and supporting NR projects until mid-April.
Funding has also been agreed to ensure suppliers on these projects will also be paid for ongoing NR work.
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