The collapse of construction giant Carillion could be highly damaging for thousands of small British firms, according to a number of leading industry organisations.
The Federation of Small Businesses (FSB) is one of a growing number of business groups to have called for payment protection for Carillion’s small suppliers and sub-contractors, of which there are thousands.
The Building Engineering Services Association (BESA) and the electrotechnical and engineering services trade body, the ECA, are also among the organisations to have expressed concerns for Carillion sub-contractors in the wake of the company’s demise.
The UK’s second biggest construction firm was believed to have debts amounting to around £1.5bn when it went into liquidation in 15 January, owing roughly £800m in retention payments to small suppliers and sub-contractors.
Worries have arisen that much of this money may now be lost, putting the survival of many of Carillion’s sub-contractors at risk.
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