Chamber and committees

The Scottish Government will continue to work with all relevant stakeholders on the many aspects of construction procurement including contract management.

a) The Scottish Government has no contracts with Carillion, therefore the government’s workforce has not been affected.

b) The Scottish Children’s Reporter Administration has one contract for Facilities Management Services that commenced 6 January 2014 and is due to expire
5 September 2018. Highlands and Islands Enterprise have two contacts for Facilities Management, one which commenced on 2 May 2016 and is sue to expire
1 May 2019 and other which commenced 22 March 2017 and is due to expire
6 March 2020. Contingency measures have been put into place to ensure continuation of service delivery and therefore there should be no effect to either Scottish Children’s Reporter Administration or Highlands and Islands Enterprise.

c) The Registers of Scotland Administration has one contract for Facilities Management Services that commenced 1 October 2013 and is due to expire
30 September 2018. Contingency measures have been put into place to ensure continuation of service delivery and therefore there should be no effect to the Registers of Scotland.

The information is provided in the following table:

* Please note as this is subject to commercial negotiations it would be inappropriate to name Carillion’s sub-contractor

Where existing contracts were in place with Carillion and as part of on-going Contract Management of all its major contracts the Scottish Government monitors the financial health of its contractors. Due to the varying size and complexity of the contracts involved the type and level of assessment is undertaken on a contract by contract basis and is proportionate and relevant.

In relation to (a) on Aberdeen Western Peripheral Route, the Scottish Government has continued to work closely with the Joint Venture partners (Balfour Beatty and Galliford Try) and have sought assurances from Carillion’s partners that they would be able to continue the contract.

In relation to (b) the Scottish Government contacted Scottish public bodies that had facilities management contracts with Carillion with advice and support on contingency planning.

While the Scottish Government provides the policies, frameworks and resources for high quality healthcare in Scotland, it is for each NHS Board to decide best how to utilise funding, facilities and staff while taking account of national and local priorities to meet local health needs, including the provision of specialist physiotherapy for adults with muscle-wasting conditions.

The Public Bodies (Joint Working) (Scotland) Act 2014 makes clear that it is the responsibility of Integration Authorities to commission and plan services and supports to meet the needs of their local population. It is expected that when commissioning services and supports that Integration Authorities extensively engage with their local communities to ensure that they best meet local need.

Additionally the Scottish Muscle Network, funded by NHS Scotland National Services Division, brings together a wide range of stakeholders across health and social care, to drive forward improvement in services and support for young disabled adults with muscular dystrophy and other neuromuscular conditions.

We are continuing an extensive exercise to gather as much information as possible with respect to public and private contracts where Carillion have been involved.

Through making using of the Public Contract Scotland system where Contract Award Notices are published, Carillion are involved in following live joint ventures - Aberdeen Western Peripheral Route and Shotts Electrification scheme.

Carillion’s partners in the Aberdeen Western Peripheral Route Joint Venture are Balfour Beatty and Galliford Try who are taking over all works previously undertaken by Carillion.

The Shotts Electrification scheme is a joint venture between Carillion and SPL. In the event of one party becoming insolvent, the other will assume responsibility for delivering the work. Network Rail have received an assurance from Carillion’s Joint Venture SPL, that they will continue with the works and that they will secure the necessary resource in order to do so.

We are continuing an extensive exercise to gather as much information as possible with respect to public and private contracts where Carillion have been involved.

Through making using of the Public Contract Scotland system where Contract Award Notices are published the following facilities management contracts/frameworks are currently live within the public sector:

*Mini competition run under Crown Commercial Service Facilities Management Framework for 3 public bodies (Scottish Children’s Reporter Administration, National Museums Scotland and Historic Environment Scotland). The estimated value is based on total value including all three bodies, however currently only Scottish Children’s Reporter Administration remain engaged in the contract.

+NHS Greater Glasgow and Clyde do not contract directly with Carillion, their contract is with the PFI contractor.

We are continuing an extensive exercise to gather as much information as possible with respect to public and private contracts where Carillion have been involved. Through making using of the Public Contract Scotland system where Contract Award Notices are published there are two framework/contracts which are currently live and defined as Works under Procurement Regulations.

North Glasgow Housing Association Ltd hold a Framework Agreement for the Provision of General Builders Work and Sundry Services North Glasgow which has an estimated value of (a) £1,577,115.71 and an expected completion date of (b) 9^th February 2018. To date Carillion have not been engaged on this framework.

Transport Scotland hold a contract for the Aberdeen Western Peripheral Route, through Aberdeen City Council as agent, of which Carillion are a partner with Balfour Beatty and Galliford Try in a Joint Venture. This is an Non Profit Distributing contract with an equivalent capital construction value of (a) £533,000,000 and in terms of the expected completion date (b) work is well advanced and the project is due to open in Spring 2018. However, whilst the situation with Carillion does not in itself affect project delivery timescales, given the scale of the recent announcement concerning the insolvency of Carillion Construction Ltd, it is important that we now take the necessary time to work closely with Aberdeen Roads Ltd to identify any impacts on delivery. We will then consider what can be done to mitigate any issues that may arise as a consequence of this issue.

In situations such as this our first thoughts are always with those Carillion employees who will be concerned for their jobs.

Carillion forms a one third part of the Aberdeen Roads Limited (ARL) consortium and its construction joint venture together with Balfour Beatty and Galliford Try. The construction partners of ARL are joint and severally liable for the completion of the works.

We understand that Balfour Beatty and Galliford Try will now take the necessary steps to jointly deliver the remainder of this project. We will continue to work closely with ARL to assess and mitigate any impacts that may arise as a consequence of this announcement, particularly in respect of those people employed by Carillion..