Thursday 25 January 2018

Quintain foresaw Carillion collapse last summer

On January 15th LINK I reported that Quintain had confirmed that Carillion were not active in its Wembley Park development and that the company had decided in September not to go ahead and award them the South West Lands contract which would have been worth £130m.

I remarked that Quintain  
--> appear to have been more canny than the government following Carillion's  profit warnings in July 2017. This has now been confirmed by Quintain's executive director of construction, Max Voyce, in a statement to Construction News LINK:
Quintain take the financial strength of our contractors and wider supply chain very seriously and during negotiations for a build-to-rent development at Wembley Park, Carillion issued their first profit warning.

We were concerned that the level of loss declared, along with the huge pension deficit, would seriously impact Carillion’s ability to continue to trade and garner the support of the supply chain, increasing the likelihood that our cost and programme objectives would not be met.

We therefore took the view that we would not proceed into contract upon the completion of Carillion’s precontract commission and commenced discussions with McAleer & Rushe, whom we have now successfully contracted with.

No comments: