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ARTICLE · 07 MARCH 2019

Project Bank Accounts: Making Payment Fair

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A year after its collapse, Carillion's insolvency continues to haunt both its supply chain and the wider UK construction industry.

United KingdomReal Estate and Construction

A year after its collapse, Carillion's insolvency continues to haunt both its supply chain and the wider UK construction industry. Many of those left unpaid had spent months chasing Carillion for payment, all the while staving off payment demands from others. Overnight, their debts became unsecured. The flow of cash from Carillion that would have paid its supply chain dried up. A cascade of consequential insolvencies was inevitable.

It must be galling for those affected to know that mechanisms to avoid late or non-payment already exist. Their frustration has reached politicians' ears, as can be seen from recent parliamentary activity. For example:

  • the industry's misuse of retentions is widely recognised and under scrutiny (you can read more about the Aldous Bill here);

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