Lessons from the collapse of Carillion

Originally posted on my blog for Inside Housing on January 16.

On the face of it, housing seems set to escape relatively unscathed from the crisis at Carillion but there are still some important lessons to be learned.

The construction and outsourcing firm that sounds more like a heavy metal band went into liquidation on Monday leaving £1.5 billion owed to the banks, 19,000 workers facing an uncertain future and a £600 million hole in its pension fund.

That’s before we get to the egg on the faces of ministers who continued to award it lucrative contracts despite clear warning signs about its future, the controversy about executive pay and dividends and the awful knock-on effects on smaller companies and workers in the supply chain owed money that may not get paid at all.

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