{"id":37884,"date":"2018-01-18T14:56:06","date_gmt":"2018-01-18T14:56:06","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=37884"},"modified":"2018-01-30T13:52:08","modified_gmt":"2018-01-30T13:52:08","slug":"engineering-specialists-press-pwc-and-government-on-carillion-collapse","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/engineering-specialists-press-pwc-and-government-on-carillion-collapse\/37884\/","title":{"rendered":"Engineering specialists press PwC and Government on Carillion collapse"},"content":{"rendered":"

Leading engineering services trade bodies ECA and BESA yesterday (17 January) pressed Carillion liquidators PwC to provide greater certainty to private sector contractors over the outstanding cash owed by the fallen construction giant<\/h2>\n

PwC\u2019s<\/a> David Kelly confirmed they and Carillion will provide suppliers with \u2018commitment letters\u2019 that guarantee payment for work undertaken and materials supplied during the liquidation process<\/a>. However, Kelly advised that work completed before Monday 15 January 2018 will be treated as \u2018unsecured debt\u2019, and at the back of the queue for payment.<\/p>\n

The liquidator also stated that work had been \u2018paused\u2019 on many construction sites until the situation could be evaluated, and he was unable to provide a timeframe for if and when work would restart.<\/p>\n

ECA<\/a> Director of Business Paul Reeve said:<\/p>\n

\u201cWe have already heard from\u00a0hundreds\u00a0of specialist contractors, across construction and services, who are taking a major hit, and some may not survive. Everybody involved needs to work to prevent a repetition of this situation, and part of that is a legal requirement to pay suppliers promptly.\u201d<\/p>\n

BESA<\/a> Director of Legal and Commercial Rob Driscoll added:<\/p>\n

\u201cWe are encouraged that HM Revenue and the banks will take a sympathetic, long term approach with specific provision for those hit in the wake of the Carillion crisis. We are however very concerned that the negative impact on thousands of unsecured SME supply contractor creditors will be unsustainable, creating tension with the Government\u2019s industrial strategy.\u201d<\/p>\n

The discussions took place during a meeting that was also attended by Business Secretary Greg Clark MP and Small Business Minister Andrew Griffiths MP, along with a range of other trade bodies including SEC Group, BCSA, Build UK, FMB, CECA and the CPA.<\/p>\n

Clark confirmed that the banks had committed to provide those affected by the fallout with support and special arrangements. The Business Secretary also noted that HMRC would be taking a \u2018flexible\u2019 approach to tax bills, and will provide information on this in due course.<\/p>\n

Earlier in the week (15 January), ECA and BESA also met with Government ministers and officials, to discuss the immediate aftermath of Carillion\u2019s collapse. During the talks, the two trade bodies called on the Government to provide maximum support to businesses affected, and to learn lessons from the crisis and undertake full scale reform of supply chain and procurement practices. The Business Secretary said that the \u2018construction sector deal\u2019 would be an appropriate vehicle to bring about structural change in the industry.<\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

Leading engineering services trade bodies ECA and BESA yesterday (17 January) pressed Carillion liquidators PwC to provide greater certainty to private sector contractors over the outstanding cash owed by the fallen construction 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