One of the UK's largest construction companies, Carillion, has entered into compulsory liquidation.
The firm is understood to have public sector or public/private partnership contracts worth £1.7 billion, including providing school dinners, cleaning and catering at NHS hospitals and construction work on rail projects such as HS2.
It employs around 43,000 globally - around 20,000 in Britain.
But what is its relation to the Armed Forces?
Carillion is the largest provider of facilities management to the Ministry of Defence (MoD), operating between £700 million to £1 billion worth of contracts.
According to their website, the company aims to provide "a wide range of support services for the British Armed Forces".
It supports over 360 Defence establishments and maintains around 50,000 service family homes. It focuses primarily on:
- Programme Management – reconfiguration of infrastructure and support services that deliver efficiency and operational improvement
- Integrated Facilities Management
- Critical Environment Management (CEM)
- Projects – minor works, lifecycle replacement, extensions, new builds, energy efficiency schemes
- Armouries (including issuing weapons and ammunition)
- Administration services
- Supply Chain Management
However, Carillion also delivers infrastructure and housing services to the Armed Forces through several joint ventures.
One of these is CarillionAmey, which operates five different contracts on behalf of the Defence Infrastructure Organisation (DIO).
It has one for the repair and maintenance of Service Family Accommodation (SFA), called the ‘National Housing Prime Contract’, and four for the management of our military estates across four regions called the ‘Regional Prime Contracts’.
Through these arrangements, they repair and maintain over 49,000 homes for Service families and 280 RAF Stations, Army Garrisons, Naval Bases and defence sites across the UK.
Another joint venture between Carillion and KBR was awarded a contract to support the Army Basing Programme in November 2016.
Worth £1.1 billion, it aims to arrange a series of unit moves and re-roles within the UK, and the return and resettlement of troops from Germany by 2019.
How will the liquidation affect military housing?
It's hard to say as yet. A statement published on Monday by CarillionAmey says:
"The impact on CarillionAmey’s operations remains limited and we will continue to deliver services as normal.
"CarillionAmey Limited and CarillionAmey (Housing Prime) Limited are two separate legal entities and operate almost entirely independently from our parent companies.
"Both CarillionAmey entities get paid directly by our customers and have our own banking facilities, therefore we have no concerns about our ability to continue to operate our businesses and our staff and suppliers will continue to be paid as normal.
"Furthermore, the infrastructure is in place to ensure we can continue to deliver for our customers, which our staff and suppliers will continue to do."
However, a statement by one of CarillionAmey's parent companies - Amey - reveals that they will "ensure continuity of service to the DIO and the MoD":
"For the past few weeks, Amey has been working on detailed contingency plans with the DIO and the Cabinet Office to ensure it can effectively continue to manage the contracts and these are being implemented today.
"Amey confirms it is fully prepared to continue the service obligation of the contracts without adverse effect on the employees of the joint ventures or the supply chain."
Cover picture courtesy of CarillionAmey.