Carillion- Time for an FM rethink?
- Andrew Watson
- Jan 15, 2018
- 2 min read

As someone who was employed by Carillion for one whole week, I won't shed a tear for their un-surprising demise, though I do sympathise with the countless talented people whose jobs have been compromised, and the thousands of suppliers whose businesses are at risk.
In 2008 I left Alfred McAlpine Business Services to start a one year sabbatical, in 2009 I returned to discover that they had been acquired by Carillion. A number of my peers had taken early retirement and voluntary redundancy and after a week of being reminded that I was a number not a free man, i opted to take mine also.
The causes of Carillion's demise are multifaceted. But it is clear that it was too big, too complex, too diverse and too arrogant. I have lost count of the number of Carillion employees who reported feeling paralysed by layers of bureaucracy and controls, and the number of suppliers who were put at risk by draconian payment terms, which were often breached.
What does Carillion's demise say about FM in general? Perhaps nothing? Perhaps this is just an example of corporate malpractice on a grand scale? I believe however, that it should present an opportunity for reflection. Whilst I will continue to be an advocate for outsourcing (it is my bread and butter after all), the decision to outsource needs to be made on a case by case basis and there is an argument that critical infrastructure should be managed in a different way. For those that don't agree, I'd ask who actually carries the risk on contracts with ultra low mark ups? In this case, Carillion has paid the ultimate price, but employees, suppliers, customers and the tax payer appear to be very much on the hook.
I have attached a link to a related article in the Independent:
https://www.theguardian.com/commentisfree/2018/jan/16/the-guardian-view-on-carillions-collapse-no-hiding-place