Leeds City Council (LCC) is in talks with an unnamed contractor, which has recently taken on former Carillion staff, about completing the council’s second Carillion construction contract.
Construction of the 7km City Centre Cycle Superhighway had already begun at six sites when Carillion collapsed on 15 January this year, terminating its £4M contract with LCC and halting work on the scheme.
It is the council’s second contract to be disrupted by Carillion’s failure. The firm had been named preferred bidder on the £126M Leeds Orbital Ring Road, forcing the council to repeat procurement for the project.
As part of its due diligence work before it awarded Carillion the £4M Cycle Superhighway construction contract in October last year, LCC put measures in place to protect itself from potential insolvency, including a financial bond.
Now funds from the financial bond are being used to procure a new contractor, and LCC is in talks with a contractor currently working for the council about picking up Carillion’s work.
“The council is currently in discussions with a contractor which has appointed a number of former Carillion staff about the possibility of them completing the project,” said an LCC spokesperson.
“This solution will ensure the quickest return to site and subsequently offer the best value for money, as well as providing consistency to the project and ensuring the impact of Carillion’s liquidation on the local workforce is reduced.”
A traffic management contractor which had been working for Carillion is ensuring the sites remain safe ahead of construction restarting.
LCC added it had been working with key suppliers and sub-contractors to make sure the effect of Carillion’s collapse is contained.