Media coverage of construction giant Carillion’s imminent liquidation had initially focused on critical discussions between Carillion, its lenders and the government in an attempt to save the business. No deal could be reached to save the company after its huge debts of £1.5bn finally took their toll.
As soon as it was confirmed the business could not be saved, attention turned quickly to the impact on approximately 20,000 employees as well as the huge potential disruption and costs across so many construction projects and government contracts including the building of new hospitals.
If you are an employer on a number of on-going and completed projects what should you be thinking about? One scenario you may be faced with are gaps in your perceived contractual safety-nets – insured or otherwise. If the building contract was on a design and build basis this would be the main course of redress should defects arise.
Jack Wolstencroft from Griffiths & Armour’s construction team commented, “our experience of using specialist Latent Defects insurers has enabled us to advise and support our clients by putting in place tailored risk transfer mechanisms to potentially fill any gaps that may have occurred”. He added “an initial premium indication can be quickly obtained following a brief discussion and we would welcome further discussions should this be of interest”.
If you require immediate insurance or risk management assistance as a result of the Carillion liquidation or more general advice on insurance cover within the construction industry, please get in touch using our contact details below and we will be happy to speak with you.