Nationwide brings services in-house after Carillion collapse

The procurement team at the Nationwide Building Society are bringing contractors previously employed via Carillion…...

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The procurement team at the Nationwide Building Society are bringing contractors previously employed via Carillion into their property services department to work in-house, it has been revealed.

Roughly 250 former Carillion contractors have already been brought into the fold, securing jobs that would otherwise have been at risk following the collapse of the major construction industry firm on 15 January 2018.

“Our contractors perform a vital and valued role for the society,” Nationwide said in a statement. “During an unsettling time for Carillion employees we felt it was important to provide them with some reassurance. We are today announcing a proposal to bring all services provided directly by Carillion in house… This will provide clarity for those affected and ensure that services are maintained. As part of the wider supply chain arrangements we will also now look to deal directly with third-party suppliers that currently support the Carillion contract.”

Laura Falkner, Chief Procurement Officer at Nationwide, speaking to Supply Management said that she believed it was the right thing to do. She confirmed that the society was still working to directly contact ex-Carillion suppliers in order to redefine their supply relationship management. Carillion provided procurement as a service for Nationwide in areas including cleaning, maintenance and security. Roughly 1,500 people were employed in this way.

The Lloyds banking group has meanwhile announced a £50m emergency fund to help small businesses affected by the Carillion collapse. The organisation went into liquidation with an estimated £900m in debts and a £571m pensions deficit.

At the time of its collapse, Carillion is believed to have been the main contractor on 57 different projects worth a total of £5.7bn. These included the HS2 project (worth £1.3bn alone), the Liverpool Hospital (£450m) and a Salisbury army base programme (£340m).

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