Carillion subbies face D-Day over discounts

Grant Prior 14 years ago
Share

Carillion will start kicking subcontractors off its supply chain from Friday unless they sign-up to controversial new terms.

The Enquirer has been shown emails by angry trade contractors who have been told to sign-up by the end of the week or have their deals ripped-up.

Carillion courted controversy earlier this year when it asked subcontractors to discount 20% from its bills.

One subbie told the Enquirer: “It’s not an option – you either discount or they won’t give you any work.”

A Carillion spokesman said it selected its preferred suppliers on “a myriad of requirements” including health and safety, quality, reliability of delivery, and pricing.

He added: “It is a competitive market and if suppliers offer discounts, and some instances double digit proposals, this sets a benchmark for other suppliers.”

The demand seen by the Enquirer states that all suppliers who have not signed-up with Carillion’s online bidding system by Friday will “no longer be able to work for Carillion”.

The source said: “I’m wondering whether that’s a bad thing at all considering the terms they are implying.”

The Carillion spokesman added: “Supplier terms are ultimately determined by competitive tendering, including e-auctions, not by Carillion.

“The best suppliers set challenging benchmarks for the others.  Suppliers are selected using an extensive ‘score card’ covering everything from quality, reliability of delivery, health and safety, and sustainability, as well as price and value for money.

“For many goods and services, factors other than price are the main determinants in choosing suppliers.”

Latest news

Mace confirmed for £140m Gatwick Airport Pier 6 extension

Contractor PJ Hegarty has started enabling works in middle of busy airport
7 hours ago

Graham takes on ISG £45m Coventry cultural hub job

Firm will start conversion work in the Spring on former IKEA store
8 hours ago

Alun Griffiths to “restructure and resize” after £95m loss

Redundancies due to be announced at Welsh civils contractor
1 day ago

Fire safety project approval delays hit Van Elle profits

Piling specialist also reviews future of Canadian operation amid fresh economic uncertainty
14 hours ago

JRL Malaysian backers plan £150m London city office refurb

Ardmore set to deliver landmark 25 Finsbury Circus building overhaul
14 hours ago

500-home block to replace 19 storey Sutton office tower

Landmark project to deliver 312 Build to rent and 195 co-living homes
15 hours ago

Building envelope specialist Bailey buys Comar

Specialist now offers complete building envelope solutions
14 hours ago

Subcontractors wanted for work across Wales

Big name buyers at latest Constructionline event: Register now
14 hours ago

Balfour Beatty profit dented by £83m building safety hit

Increased order book at £18bn secures growth over next two years
2 days ago

Expanding utilities specialist Ipsum buys Matrix Power

Power engineering contractor takeover will strengthen offer in North East
2 days ago

Historic scaffolding firm files administration notice

Hertfordshire based Rodells has been trading since 1898
2 days ago

Planning Bill to have “seismic” impact on construction

Building-boosting reforms go before Parliament
2 days ago

Briggs & Forrester hits record revenue and orders

M&E specialist rebounds with strong growth across three divisions
2 days ago

Man Utd confirm plan for £2bn ‘super-tent’ stadium

Club to press ahead with 100,000-seat 'Wembley of the North'
2 days ago

Government spending keeps profits edging-up at Kier

91% of work now with public sector and regulated companies
3 days ago

Costain on track for step change to 5% margin

Alex Vaughan says order book has jumped £1.5bn to £5.4bn
3 days ago

Mace tops February contracts league

Confirmation of £300m London Victoria Street project lifts firm to pole position
3 days ago

Wates raids Laing O’Rourke for new construction operations chief

George Mosey leaves Laing O'Rourke after 16 years
3 days ago

Travis Perkins CEO Pete Redfern steps down due to ill health

Redfern joined builders' merchant last year after 14 years at Taylor Wimpey
3 days ago

Morgan Sindall wins £61m Liverpool lab scheme

Construction to start this Autumn on latest Knowledge Quarter project
3 days ago

Glencar to build timber-framed office block

Work to start next month on 79,200 sq ft scheme in Maidenhead
3 days ago

Shed specialist Marbank files administration notice

£67m turnover portal-framed building specialist files court notice
4 days ago

Birmingham council submits £1bn Druids Heath plan

High rise estate to be replaced by-3,500 home eco village
4 days ago

Cannabis farm gang posed as utilities contractor

Gang jailed for 28 years after diverting power to more than 100 cannabis farms
6 days ago

Firm fined after workers climb scaffold without ladder

HSE investigation prompted by death on Liverpool site
4 days ago

Clancy renews £250m Southern Water deal

Contractor vows to maximise value for money and minimise disruption
4 days ago

McLaren go-ahead for 314 flats Watford scheme

Police station and magistrates court to be demolished
4 days ago

Former Liverpool mayor charged in building contracts probe

Construction bosses also charged as part of Operation Aloft
6 days ago

Bidding to start for £700m Irish sea interconnector work

Work includes converter stations at Hunterston and Kilroot near Belfast
7 days ago

Muse to redevelop Durham County Hall HQ site

Morgan Sindall regen specialist seals another major development deal
7 days ago

Contractor services