What Business Is Carillion?
Carillion was a British multinational construction and facilities management company that was founded in 1999 and headquartered in Wolverhampton, England. The company provided a wide range of services across various sectors, including construction, infrastructure support, facilities management, and public-private partnership projects. Carillion operated in the UK and internationally, with projects in countries such as Canada, the Middle East, and the Caribbean.
The company had a diverse portfolio, which included building and maintaining hospitals, schools, roads, and railways. Carillion also offered services in energy and power generation, as well as facilities management for commercial and public buildings. Their operations spanned across various sectors, making them an influential player in the construction and support services industry.
Carillion’s business model involved both construction contracts and long-term service contracts. They secured contracts through competitive bidding and would then carry out the construction or facility management work. The company had a significant number of subcontractors and suppliers, which allowed them to handle large-scale projects efficiently.
However, in January 2018, Carillion collapsed, making it one of the UK’s largest corporate failures. The company faced severe financial difficulties due to a combination of factors, including cost overruns, delays in payments from clients, and a large debt burden. Ultimately, this led to the company failing to secure additional funding and declaring insolvency.
1. What caused Carillion’s collapse?
Carillion’s collapse was primarily caused by financial mismanagement, including cost overruns and delays, coupled with a significant debt burden.
2. How did Carillion operate internationally?
Carillion operated internationally through subsidiaries and joint ventures, undertaking construction and support service projects in various countries.
3. What sectors did Carillion operate in?
Carillion operated across multiple sectors, including construction, infrastructure support, facilities management, energy, and power generation.
4. Did Carillion have any public-private partnership projects?
Yes, Carillion was involved in public-private partnership projects, such as building and maintaining public infrastructure like hospitals and schools.
5. What services did Carillion offer in facilities management?
Carillion provided facilities management services for commercial and public buildings, including maintenance, repairs, and other support services.
6. How did Carillion secure contracts?
Carillion secured contracts through competitive bidding, offering their construction and support services for various projects.
7. Did Carillion have subcontractors and suppliers?
Yes, Carillion had a significant number of subcontractors and suppliers, which allowed them to handle large-scale projects efficiently.
8. What led to the financial difficulties faced by Carillion?
Carillion faced financial difficulties due to factors such as cost overruns, delays in payments from clients, and a large debt burden.
9. What happened to Carillion after its collapse?
After its collapse, Carillion’s assets were liquidated, and its ongoing projects were either transferred to other companies or halted. The company’s employees and subcontractors were significantly affected by the collapse.