The insolvency of the UK’s second largest construction company has had a knock-on effect throughout the sector.
Carillion was involved in big projects across the UK and internationally and had, until recently, won a £1.4bn contract for HS2. Following its insolvency, thousands of subcontractors found themselves out of work and with substantial bad debts. It is estimated that between 25,000 to 30,000 subcontractors were owed £1m.
SME’s and specialist subcontractors have been hit hard by Carillion’s fall. Many of them will have relied on the giant for significant amounts of work. It is likely they would have had to write off virtually everything owed to them by Carillion.
According to industry sources, conditions have deteriorated over the past 12 months, lending weight to fears that Carillion’s collapse is unlikely to be the last among the UK’s biggest firms.
How can the Risk Dashboard protect your business against this risk?
At the Risk Dashboard, we are partnering with the Black Country Chamber of Commerce to trial the Risk Dashboard’s audit and case management software to its members, many of whom would have been affected by Carillion’s collapse. This is to ensure that its members are not affected by the same type event in the future.
The Risk Dashboard’s modular based platform covers many of the operational aspects of an SME business which highlights potential areas of concern and risk and how to manage and mitigate against them, such as:
- Procurement and Supply
- Business Continuity
- Quality
- and Finance, to name 4 of the 19 modules
Black Country Chamber CEO, Corin Crane, says, ‘There is likely to be greater demand placed on his members to secure both the funding involved throughout the supply chain, and also their contractual performance against those larger contracts’. He also added that the Risk Dashboard is designed to identify, at an early stage, where a business has limitations and how to find the various solutions to put in place, such as Business Continuity planning. He sees the Risk Dashboard as an essential platform to managing and supporting his members future growth and stability.
So, don’t let your business become the next victim of a Carillion type event! For more information on how the Risk Dashboard can assist you, visit our website, or please don’t hesitate to contact Neil Campbell, Commercial Director on neil.campbell@riskdashboard.co.uk or info@riskdashboard.co.uk
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