Facilities management company, Carillion goes into compulsory liquidation
January 26, 2018
You may be aware that, last week, facilities management and construction company Carillion went into compulsory liquidation.
Carillion provided facilities management and catering services to some schools. Minister for the Cabinet Office, David Lidington, said in a statement to the House of Commons that about 219-230 schools have contracts with Carillion plus a small number of building contracts.
If you govern at a school that will be affected by the compulsory liquidation, we advises that you speak to your headteacher to ensure that there are short-term and long-term contingencies plans in place.
You can access further information regarding the ongoing situation by clicking here.
This week has also seen the publication of a National Audit Office (NAO) report on the rationale, costs and benefits of the Private Finance Initiative (PFI). Many schools have buildings which were financed through PFI contracts, including with Carillion, and this is often associated with significant costs and restrictions. The NAO report highlights increased transparency, ongoing incentives which have driven PFI use, and a lack of data on the benefits.