Network Rail moves quickly to protect projects after Carillion collapse

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.

The demolition and rebuilding of Splott Road overbridge in Cardiff was a Carillion project. NETWORK RAIL

Carillion employed around 19,500 in the UK, many of whom are engaged on Network Rail contracts.

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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