The CLC regrets the collapse of Carillion and the uncertainty and stress for its employees, the supply chain and clients who have been affected. We welcome the swift and proactive response by Government, clients, the industry and banks to mitigate the immediate and longer-term impacts of the liquidation. The CLC continues to support actions that can be taken to minimise these impacts.
We are clear that this failure highlights many of the weaknesses in the construction industry business model, and that collective change is needed to reduce the risk of future failures and improve industry performance, productivity and profitability.
CLC believes that the Sector Deal, which will be published imminently, is structured to make this transition – focusing on Digital, Manufacture and Performance as catalysts for the changes necessary to put our industry on a more sustainable footing. We have also taken steps to make sure that the Sector Deal addresses many of the procurement, payment and risk transfer issues which contribute to many of the difficulties faced by construction firms and their workforce.