FMB Raises Concerns Over Govt's Over-Reliance On Major Contractors

The Federation of Master Builders (FMB) has raised concerns over the Government's over-reliance on major contractors following the collapse of Carillion.

The UK's second largest construction company entered into compulsory liquidation earlier today, 15 January, with debts of £1.5 billion.

Brian Berry, Chief Executive of the FMB, said the company's liquidation raises "serious questions" for the Government and its reliance on major contractors.


"Carillion's liquidation is terrible news for all those who work for the company and it will have serious knock-on effects for the many smaller firms in its supply chain, some of which will be in serious financial danger as a result of Carillion's demise," he said.

"The Government needs to open up public sector construction contracts to small and micro firms by breaking larger contracts down into smaller lots. That way, it can spread its risk while also reaping the benefits that come from procuring a greater proportion of its work from a broad range of small companies.

"Construction SMEs train two-thirds of all apprentices and are a sure-fire way of spreading economic growth more evenly throughout the UK."

(LM/MH)