Monday, 27 September 2021

Contract cancelled

OXFORDSHIRE County Council has terminated its contract with collapsed services company Carillion.

The authority has paid £10.65 million to cover work already completed as part of its final settlement with the firm, which provided a number of services including school meals and cleaning, maintenance of council buildings, property services and building work.

It struck the exit deal in December, weeks before Carillion went into compulsory liquidation due to mounting debts and pensions deficits.

The council says that if it had not done so, it would have required lengthy litigation to end the agreement.

Councillor Lorraine Lindsay-Gale, cabinet member for property and community services, said: “Carillion’s financial problems were not the original reason we wanted to end the contract but as the scale of the problem became apparent we became very glad that we ended it when we did.”

Carillion staff in council-maintained schools will keep their jobs.

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