Legal Expertise Since 1995

Expert Legal Advice 0161 832 5000

More ‘reward’ for outsource giants in wake of Carillion demise

Posted by Lynne on May 7th 2018
(banking finance, Business, business finance, Commercial Litigation, Commercial Property, commercial property and real estate, commercial property and real estate services, construction disputes and litigation, construction litigation and disputes, Contract Law, Corporate and Commercial, corporate and commercial solicitors, Debt Recovery, dispute resolution, Employment, Insolvency, IP, Sports and Media, Litigation, Media Coverage, Professional Negligence)

The bosses of Mitie and Serco will appear in front of Parliament’s Public Administration and Constitutional Affairs Committee this week as the Government gathers evidence in an attempt to avoid another high profile collapse of a business providing core services to institutions such as schools and hospitals.

Rupert Soames, the chief executive of Serco and Phil Bentley, the chief executive of Mitie, are expected to speak about how companies tender for work from the public sector, addressing concerns that profit margins have been pushed dangerously low by increasingly competitive pricing of contracts.  Mr Soames said there is “an urgent need to re-think the relationship between the UK Government and its suppliers”.  He said that a fundamental tenet of commercial life is that “risk must be balanced by reward” but that this was not always in proper balance in Government procurement. This had produced an “increasingly enfeebled supply base”.  He continued ” the provision of sensitive public services should not be completely exposed to the harhest rough-and-tumble, boom and bust cycle, of a totally free market where the relative power of either a buyer or a seller may become disproportionate”.

Carillion had been found to be bidding at low rates to secure more work.   A separate committee has been holding an inquiry into the company’s collapse, the findings of which are expected to be published in the forth coming weeks.

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest News

19 Jul
Supreme Court rules in Mills v Mills: Enough is enough?

The Supreme Court has ruled that a divorced husband should not have to increase payments to his ex-wife after she mismanaged her finances following their separation. The couple divorced in 2002 after a 15-year marriage, the wife received £230,000 in settlement of her capital claims against her husband and it was agreed that he would […]

View More

What Clients Say

There is a 100% record of success on all litigious cases with Stripes.

The quality of Stripes service is invaluable in pursuing either contested or uncontested claims.

Nick Dee Robinhood Consulting View More