Managers of a 90%-complete, 646-bed hospital in Liverpool will take charge of the project after unravelling a public-private partnership with the contractor Carillion Plc, which collapsed ignominiously in January (ENR 1/22 p. 12). Following cancellation of the contractor’s other large U.K. hospital P3, near Birmingham, project lenders face large losses.
With a global payroll of 43,000, Carillion, the U.K.’s second-largest contractor at the time, crashed, leaving a $3.4-billion hole in its employee pension fund and owing $2.6 billion to its supply chain and creditors. The financial collapse was “a story of recklessness, hubris and greed,” concluded a joint report from two parliamentary committees, Business, Energy and Industrial Strategy, and Work and Pensions.