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Metronet collapse hits subbies

Subcontractors on London's Underground are facing a cash and workload squeeze as a result of the collapse of Metronet and the winding-up of its contracting arm, Trans4m.
Specialist Engineering Contractors' Group chief executive Rudi Klein confirmed that smaller contractors have been hit by
the contractor's collapse.

"It is true – the trouble is that people adversely affected do not talk too much. But I know these things are happening," he said.
Klein said mechanical and electrical contractors were particularly affected.

Tube upgrade contractor Metronet went into PPP Administration in June, when it ran out of funds to keep the day-to-day business running. Metronet's contracting arm Trans4m, owned by four of its five shareholders – Atkins, Balfour Beatty, EDF and Thames Water - was wound-up almost immediately after Metronet went into administration.

As a result, some contractors are understood to be waiting to be paid for work already completed, while others are worried about future workload.

Klein is lobbying for future projects to protect small contractors by setting up project bank accounts, protected by trust.

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