{"id":74132,"date":"2020-03-31T09:22:48","date_gmt":"2020-03-31T08:22:48","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=74132"},"modified":"2021-03-15T12:23:51","modified_gmt":"2021-03-15T12:23:51","slug":"costain-suspends-work","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/costain-suspends-work\/74132\/","title":{"rendered":"Costain board take 30% pay cut to mitigate COVID-19 impact"},"content":{"rendered":"

Construction work has been suspended on all of Costain\u2019s<\/a> big projects in London, as senior leadership agrees to take a 30% pay cut to protect cash<\/h2>\n

In response to the coronavirus crisis<\/a>, Crossrail, HS2 enabling works and Thames Tideway have been put on hold by Costain.<\/p>\n

These projects account for nearly a third of the group\u2019s revenue.<\/p>\n

The company said \u201call employees who can work from home are now doing so\u201d and for those who are recognised as essential workers providing critical work on construction sites<\/a>, they have put in place strict measures to ensure their health and safety.<\/p>\n

Costain provides a range of services to strategic highway, local authority clients and to water utilities, it has seen activities continue at safe levels of operation. These services represent \u00a050% of its annual revenues.<\/p>\n

In its consultancy services the energy, defence and aviation, which together represent 10% of the annual revenues, Costain reveals it is seeing little change in demand.<\/p>\n

However, in London to ensure safe travel while social distancing, on-site construction activities including on its Crossrail<\/a>, HS2 Enabling Works and Thames Tideway contracts have been paused, pending further review, at the request of its clients.<\/p>\n

On-site construction activities which have been paused represent 30% of its revenues. Home-based activities which are continuing on these projects represent 10%.<\/p>\n

In the statement, Costain said: \u201cWe remain well placed to benefit from the long-term opportunity to address the UK\u2019s changing infrastructure needs once our operations can fully resume.\u201d<\/p>\n

Financial actions<\/h3>\n

To mitigate the financial impact of COVID-19 and protect its cash position during this period of disruption, Costain is implementing a number of actions:<\/p>\n