Carillion, a victim of a broken industry model

15 January 2018
Mathew Riley, Ramboll’s UK Managing Director and ACE Chair, reflects on Carillion’s sad news:
"The industry should look at this as impetus to drive positive change"

"The industry should look at this as impetus to drive positive change"

“If ever we needed more evidence and examples of the need for industry reform, this is it! Carillion are a good company with a long heritage but are the victim of an industry business model that doesn’t work. It was an accident waiting to happen. 

"Public sector procurement is part of the problem and the way they have sought to manage, share and transfer risk through the supply chain. For an industry that operates on wafer thin margins, to take on more risk particularly for high value contracts, was always a dangerous strategy. We need a more sustainable business model moving forward and the government need to play a more active role in helping the industry to perform.

"The construction industry is facing a lot of converging forces; the need for increased productivity, the uncertainty from Brexit, the opportunities around disruptive technologies, tackling the skills shortage – and now, the realisation of a broken business model. The failure of Carillion is a very sad day that brings uncertainty to a lot of people. The industry should look at this as impetus to drive positive change, and firms like Ramboll and organisations like ACE will be there to play their part in ensuring our industry is fit for the future.”

 

Ramboll

Ramboll
240 Blackfriars Road
London SE1 8NW
United Kingdom
Tel: +44 20 7631 5291
Fax +44 845 299 1610

Mail: london@ramboll.co.uk

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