Website Cookie Policy

We use cookies to give you the best possible online experience. If you continue, we’ll assume you are happy for your web browser to receive all cookies from our website.
See our cookie policy for more information.

Practice Areas

More Information

thepartners@wrigleys.co.uk

Leeds: 0113 244 6100

Sheffield: 0114 267 5588

FOLLOW WRIGLEYS:

Carillion and schools

February 2018

There has been a lot in the news about the appointment of a liquidator for Carillion and what this could mean for existing contracts with schools.

There are generally two types of Carillion contracts that schools are involved with:

  • Contracts to build or maintain new schools or buildings; and
  • Contracts for school services, such as cleaning or catering.

These contracts are sometimes a result of a PFI scheme, but that is not always the case.

At the moment, the government's advice is "business as usual" although it does accept that at least some building contracts may need to be re-procured due to Carillion's difficulties.  If schools with Carillion contracts are concerned about timescales slipping or build programs simply stopping, they should be looking at the detail in the contract to see what it says about insolvency.  Often, the contract can be terminated due to a party's insolvency and this may be something that schools want to consider doing although they should talk to other parties involved with the contract – often this would be the local authority.

If schools have service contracts with Carillion, then there is a pressing need to talk to the Carillion staff who work at the school to get a feel for their concerns and plans.  At the moment, Carillion staff are being reassured that they will be paid but, if that promise proves hollow, or if their staff take matters into their own hands and change job, schools could find themselves without their regular service staff.   Schools should make emergency plans for such a situation.  

One rather drastic option would be for schools to terminate their contracts with Carillion if the contractual insolvency provisions allow for that.  They would then be free to use another contractor or even employ the existing Carillion staff direct.  Before terminating any Carillion contracts, schools should review the terms carefully to see what rights they have to terminate and consider whether any termination might trigger a penalty.  We can help with this review if required.

 

If you would like to discuss any aspect of this article further, please contact Emma Ridge or any other member of the Education team on 0113 244 6100.

You can also keep up to date by following Wrigleys Schools team on Twitter here

The information in this article is necessarily of a general nature. Specific advice should be sought for specific situations. If you have any queries or need any legal advice please feel free to contact Wrigleys Solicitors

 

For more information about academisation download our podcasts

Emma Ridge View Biography

Emma Ridge

Partner
Leeds

Updated schools safeguarding guidance from September 2018

New statutory guidance on "Keeping Children Safe in Education" is expected to be in place for 3 September 2018.

Click here to view more

Avoiding religion or belief discrimination at work: new ACAS guidance

ACAS has published new guidance to assist employers in preventing workplace discrimination on the grounds of religion or belief.

Click here to view more

Wrigleys' prominent private client department grows with two solicitors who have a wealth of experience in the private client sector

Our newest Private Client Solicitors, Aurea Kevill and Richard Whittaker, talk Wrigleys, relocation from London and Yorkshire Wolds Way

Click here to view more

Employment Law Update for Charities 2018

Date: 26 Jun 2018

Venue: Hilton Leeds City, Neville Street, Leeds

Further information

Employment Breakfast Briefing - 7 August 2018

Date: 07 Aug 2018

Venue: Radisson Blu, Leeds

Further information

Employment Breakfast Briefing - 16 October 2018

Date: 16 Oct 2018

Venue:

Further information

Mailing list

Receive the latest news, events and updates from Wrigleys:

Follow Wrigleys: