黑洞社区

Unexpected stardom

The media frenzy over Carillion has caught one well known construction figure by surprise 鈥� but in a good way. Specialists鈥� champion Rudi Klein has had back-to-back media appearances ever since rumours of the contractor鈥檚 downfall took hold two weekends ago. He鈥檚 been in demand from the likes of the Today programme, CNN, ITN, national papers and regional press. You name it, he鈥檚 been there 鈥� he even appeared on the BBC鈥檚 nightly magazine programme, the One Show. 鈥淚 mean, what have they got to do with all of this?鈥� was Klein鈥檚 reaction as he headed off to the studios. And of course he鈥檚 been contributing almost daily to this magazine. So finally after spending much of his 30-year career banging on about fair payment practices, people seem to be listening. If only it hadn鈥檛 taken the insolvency of a construction giant jeopardising its supply chain to be heard.

Insult to injury

Noses pressed against locked Carillion sites, some subcontractors can see their kit sitting idle and must no doubt be tempted to think: 鈥淪od this; I鈥檓 getting back what鈥檚 mine.鈥� The problem is that it鈥檚 an offence to do so, says construction lawyer John Wevill. Even more galling is his advice for those who might see someone else using their kit. In the legal world, it鈥檚 a form of theft known as conversion. But the Boodle Hatfield partner adds: 鈥淭here would be no point calling the police as they aren鈥檛 interested in these small civil complaints.鈥� I think that is the definition of a double-whammy.

Ranking highly

Two days after Carillion went bust came some facts and figures about how many firms there are in the UK 鈥� and the number that go under. Based on the most recent ONS figures, which came out in November last year, there were 2.85 million active businesses in 2016 鈥� up 135,000 on the year before. But the number of firms going bust also went up, by 16%. Construction is sixth out of the top 10 sectors in which companies fail the most, a table headed by finance and insurance. Perhaps in next year鈥檚 package of facts and figures Carillion should be given a table all of its own.

Athletic accounting

One of my hacks remembers that when Tarmac split into two back in 1999, the launch of the construction business, renamed Carillion, featured acrobats, among other delights. I wonder if that鈥檚 where they got their inspiration from to perform the kind of accounting acrobatics that has in recent times attracted the interest of the Financial Conduct Authority. Lest we forget, Carillion went from 鈥渆verything鈥檚 going well鈥� in December 2016 to 鈥渂y the way, we鈥檙e writing down 拢845m and getting rid of our chief executive鈥� just seven months later 鈥� the official start of the whole sorry mess. 

Happier times

A month before it went bust, Carillion was busily announcing that work on Birmingham office scheme One Chamberlain Square had topped out. The eight-storey block is part of Argent鈥檚 Paradise scheme 鈥� parts of which ground to a halt following Carillion鈥檚 collapse. Anyway, which firm is going to be occupying the building? Why, none other than financial services firm and Carillion liquidator PwC, which is now in charge of telling Carillion鈥檚 subbies 鈥� and no doubt some who helped build One Chamberlain Square 鈥� that they won鈥檛 be paid the money still owing for any of the work they did before Carillion went pop.