Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Ex-Carillion staff could return to Leeds cycle scheme

13463719315 954af24dca o cropped

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.

Tags

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Please note comments made online may also be published in the print edition of New Civil Engineer. Links may be included in your comments but HTML is not permitted.