Joint venture AWPR partners offer jobs to Carillion workers
The three companies made up the Aberdeen Roads Limited consortium delivering the £550 million section of the AWPR between Balmedie and Tipperty before Carillion entered compulsory liquidation last week.
A Transport Scotland spokesperson said 76 Carillion staff will be offered employment to the remaining contractors to allow work to continue on the project.
The spokesperson said: “Aberdeen Roads Limited has confirmed there are 76 Carillion staff on the AWPR site and we understand that both Galliford Try and Balfour Beatty will offer jobs to allow progression of work on the project.
“The construction partners have reaffirmed their commitment to completing the works.”
Galliford Try revealed last week that the joint venture partners expect to foot a bill of between £60m-£80m to complete the work following Carillion’s demise.
The contractor said: “The terms of the contract are such that the remaining joint venture members, Balfour Beatty and Galliford Try, are obliged to complete the contract. Our current estimate of the additional cash contribution outstanding from Carillion to complete the project is £60-80m, of which any shortfall will be funded equally between the joint venture members.
“The companies will discuss the position urgently with the official receiver of Carillion and Transport Scotland, to minimise any impact on the project.”
Balfour Beatty said the collapse of Carillion could lead to additional costs of £35m to £45m for the firm overall but did not disclose how much would of this was attributed to the AWPR project.
Meanwhile, Kier Group, which currently operates joint ventures involving Carillion on HS2 and the Highways England smart motorways programme, has revealed that all Carillion employees on these projects will be transferred to Kier.
Following discussions with the UK government and clients, Kier and Eiffage are now 50/50 partners in delivering two of the seven HS2 civil engineering projects.
All 51 Carillion staff, including apprentices, have been offered the chance to switch to the other two companies.
Another 150 Carillion workers on smart motorways schemes have also been offered jobs with Kier, which said it had also been talking with the project’s supply chain, “ensuring continuity of skills, resources and suppliers.”
Kier chief executive Haydn Mursell said: “We have been working collaboratively with our clients and are pleased to have reached agreement with government concerning these joint ventures. We have been able to take action quickly and reassure the project teams that they continue to play an important role in the delivery of these contracts.”