Kier has confirmed that it is stepping in to replace Carillion on its High Speed 2 joint venture with Eiffage and all Highways England jobs where it was in JV with the failed contractor.
On HS2, Kier and Eiffage are now 50/50 joint venture partners delivering two of the seven civil engineering packages, lots C2 and C3. All 51 Carillion employees, including apprentices, working on the CEK HS2 joint venture have been offered the opportunity to join Kier/Eiffage with continuous service being maintained.
At Highways England, Kier has assumed full responsibility for the smart motorway schemes on which they had been working in joint venture with Carillion. All employees currently working on the schemes have been offered the opportunity to join Kier. In total 150 employees will be making this transition to Kier in the next week including seven apprentices. Kier said communication with the existing supply chain on this project has also taken place ensuring continuity of skills, resources and suppliers on these projects.
Kier chief executive Haydn Mursell said he was pleased to have been able to take action quickly and reassure the project teams that they continue to play an important role in the delivery of these contracts.
Contracts had been written to ensure that joint venture partners picked up responsibility in the event of any failure of one partner, but the announcement from Kier confirms - in the case of HS2 - the exact contribution of each partner.
Meanwhile, Carillion workers on Network Rail projects have been told their wages are guaranteed through to at least mid-April 2018.
The Official Receiver’s special managers, PwC, and Network Rail have come to an agreement which ensures that PwC will pay employees’ wages for work done on and supporting Network Rail’s projects until after Easter. Rail employees will also be fully paid for work undertaken in January.