Balfour Beatty has reaffirmed its commitment to those projects that has Carillion as part of a joint venture.
The international infrastructure group is in a joint venture with the collapsed construction and services group for three significant projects that will result in huge upgrades on Britain’s roads.
There are three projects that these two organisations have been working together on: the M60 junction 8 to M62 junction 20 scheme, the Aberdeen Western Peripheral Route, and the A14 in Cambridgeshire.
For the smart motorways project in the north west – which has seen real progress in recent months given that some of the wider lanes have been opened as part of the phased introduction of the new motorway – Balfour Beatty is working alongside Carillion, Costain and a bmJV.
The A14 Cambridge to Huntingdon upgrade project is the largest road contract in the UK, worth £1.5 billion, which will result in improvements to a 21-mile stretch of the road.
As recently as November, the work conducted on this site was celebrated because the 2,200-strong construction team had completed more than a quarter of the project within the first year of the contract.
It is hugely important for potential business in the area, reducing journey times by 20 minutes and additional capacity on the road will boost the economy.
Balfour Beatty has been working alongside Skanska, Costain and Carillion as part of a four-way joint venture.
The collapse of Carillion is a massive blow to the industry because of the uncertainty it could bring to the market, as well as the jobs it puts in danger.
In addition, the contractor has been awarded in excess of 450 projects from the government such as these, so there is a natural concern that Carillion’s problems will impact the whole of construction.
However, Balfour Beatty has confirmed in a statement it will “continue to work with its customers and will meet its contractual commitments.”
The statement added: “The profit impact of Carillion’s compulsory liquidation would be recorded as an exceptional non-underlying charge in the income statement.”
The Group confirmed it has no other material financial exposure to Carillion.