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With the likely collapse of construction giant Carillion, we asked Tom Soane, MD of Pink Street for his view in this week’s Tom’s Take.

The construction industry will suffer which could mean less new property developments in the near future and existing developments could be delayed.  Large house-builders will have to cover the cost of completing Carillion’s unfinished work.  Then there’s the smaller companies and sub-contractors that will be left without work.
This will mean property development projects either won’t be completed or will take a lot longer to complete.  It all depends on whether these firms get the money owed to them by Carillion fast enough but I doubt it will be a quick process unless the government step in… which they won’t. I don’t think it’s a long-term issue but it certainly will be some short-term suffering for a lot of innocent companies and contractors who have just been getting on with their jobs.

I would also like to spare a thought for people who may be affected by the pensions. It’s not funny at all when people pay into a pension scheme throughout their working life only to have it threatened by inept management.