One year after Carillion, PFI contracts can still be risky business

By Judith Hopper2019-01-15T06:00:00

The market is still challenging for providers in both the public and private sectors

On 15 January 2018, the Carillion group declared insolvency. In the PFI market, Carillion was a significant player: public sector contracts accounted for 45% of its UK revenue and it held around 420 contracts with the UK public sector.

The Guardian declared Carillion’s liquidation a “disaster not just for employees and taxpayers, but for public-private partnership”, and reported on “the four contracts that finished Carillion”. Two of those were the construction of PFI hospitals (the Royal Liverpool and the Midland Metropolitan), on which significant losses were incurred.

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