The news isn’t looking particularly rosy for Carillion’s future, with potential serious implications for the MOD who have in recent years awarded the company billions in contracts for support services and estate management functions including accommodation & Messing.
https://uk.reuters.com/article/uk-ca...-idUKKBN1EV0IK
There are already enough problems in Defence support without a key service provider failing with all the uncertainty of how bases and infrastructure will be maintained. It also highlights some of the issues with the thinking that it’s cheaper and better to contract out.
So where do we go from here? Plough much needed funding into Carillion to keep it afloat (is this why the MOD awarded further contracts after Carillion announced profits warnings last year?) Find a replacement supplier (at what premium as we will be over a barrel) and lose already sunk costs? Or accept that contracting out of key strategic functions isn’t always the best plan, but at risk of increasing pressure on an already creaking budget.
Not a good start to 2018, especially on sites heavily reliant on patching and ongoing maintenance.