{"id":2886,"date":"2018-03-13T11:28:19","date_gmt":"2018-03-13T11:28:19","guid":{"rendered":"https:\/\/blog.bham.ac.uk\/cityredi\/?p=2886"},"modified":"2018-05-29T11:53:34","modified_gmt":"2018-05-29T10:53:34","slug":"the-causes-of-carillions-collapse-part-a","status":"publish","type":"post","link":"https:\/\/blog.bham.ac.uk\/cityredi\/the-causes-of-carillions-collapse-part-a\/","title":{"rendered":"Part A: The Causes of Carillion&#8217;s Collapse"},"content":{"rendered":"<p><a href=\"https:\/\/blog.bham.ac.uk\/cityredi\/wp-content\/uploads\/sites\/15\/2018\/03\/Carillion-part-1.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-2888\" src=\"https:\/\/blog.bham.ac.uk\/cityredi\/wp-content\/uploads\/sites\/15\/2018\/03\/Carillion-part-1.png\" alt=\"\" width=\"900\" height=\"595\" srcset=\"https:\/\/blog.bham.ac.uk\/cityredi\/wp-content\/uploads\/sites\/15\/2018\/03\/Carillion-part-1.png 809w, https:\/\/blog.bham.ac.uk\/cityredi\/wp-content\/uploads\/sites\/15\/2018\/03\/Carillion-part-1-300x198.png 300w, https:\/\/blog.bham.ac.uk\/cityredi\/wp-content\/uploads\/sites\/15\/2018\/03\/Carillion-part-1-768x508.png 768w, https:\/\/blog.bham.ac.uk\/cityredi\/wp-content\/uploads\/sites\/15\/2018\/03\/Carillion-part-1-250x165.png 250w\" sizes=\"auto, (max-width: 709px) 85vw, (max-width: 909px) 67vw, (max-width: 1362px) 62vw, 840px\" \/><\/a>Racing to secure bids over rival construction companies, Carillion, the second-largest construction firm in the UK, hit a financial tipping point, lost the backing of the banks and collapsed. Its aggressive growth strategy and the diversification of its business portfolio increased the complexity of its internal structure. Coupled with poor oversight of its day-to-day operations, over-runs on flagship projects and an unclear corporate governance structure, the firm acquired debts of \u00a31.5bn. One may argue that the demise of the construction giant was an inevitable outcome. The aim of this policy brief is to provide insights into the cause of Carillion\u2019s financial meltdown and outline lessons for managers, shareholders, stakeholders and government from the closure of this construction giant.<\/p>\n<p>To download Part A of this policy briefing, please\u00a0<a href=\"https:\/\/blog.bham.ac.uk\/cityredi\/wp-content\/uploads\/sites\/15\/2018\/03\/Carillion-Policy-Brief-A-Final.pdf\" target=\"_blank\" rel=\"noopener\">click here<\/a>.<\/p>\n<p>To read Part B of this policy briefing, please <a href=\"https:\/\/blog.bham.ac.uk\/cityredi\/part-b-the-consequences-of-carillions-collapse\/\" target=\"_blank\" rel=\"noopener\">click here<\/a>.<\/p>\n<p>This policy briefing\u00a0was written by <a href=\"https:\/\/www.linkedin.com\/in\/amir-qamar-06434975\/\" target=\"_blank\" rel=\"noopener\">Dr Amir Qamar<\/a>,\u00a0Research Associate, City-REDI and <a href=\"https:\/\/www.birmingham.ac.uk\/staff\/profiles\/business\/collinson-simon.aspx\" target=\"_blank\" rel=\"noopener\">Professor Simon Collinson<\/a>, Director, City-REDI, University of Birmingham.<\/p>\n<p><strong><em>Disclaimer:\u00a0<\/em><\/strong><em><br \/>\nThe views expressed in this analysis post are those of the authors and not necessarily those of City-REDI or the University of Birmingham<\/em><\/p>\n<p><strong>To sign up for our blog mailing list, please\u00a0<a href=\"mailto:cityredi@contacts.bham.ac.uk?Subject=City-REDI%20Blog%20Mailing%20List\">click here<\/a>.<\/strong><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Racing to secure bids over rival construction companies, Carillion, the second-largest construction firm in the UK, hit a financial tipping point, lost the backing of the banks and collapsed. Its aggressive growth strategy and the diversification of its business portfolio increased the complexity of its internal structure. Coupled with poor oversight of its day-to-day operations, &hellip; <a href=\"https:\/\/blog.bham.ac.uk\/cityredi\/the-causes-of-carillions-collapse-part-a\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Part A: The Causes of Carillion&#8217;s Collapse&#8221;<\/span><\/a><\/p>\n","protected":false},"author":127,"featured_media":2888,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[77,85,6,13,19],"tags":[89,125,94],"class_list":["post-2886","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-city-redi-publications","category-economics","category-government","category-policy","tag-amir-qamar","tag-carillion","tag-simon-collinson"],"_links":{"self":[{"href":"https:\/\/blog.bham.ac.uk\/cityredi\/wp-json\/wp\/v2\/posts\/2886","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.bham.ac.uk\/cityredi\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.bham.ac.uk\/cityredi\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.bham.ac.uk\/cityredi\/wp-json\/wp\/v2\/users\/127"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.bham.ac.uk\/cityredi\/wp-json\/wp\/v2\/comments?post=2886"}],"version-history":[{"count":8,"href":"https:\/\/blog.bham.ac.uk\/cityredi\/wp-json\/wp\/v2\/posts\/2886\/revisions"}],"predecessor-version":[{"id":3043,"href":"https:\/\/blog.bham.ac.uk\/cityredi\/wp-json\/wp\/v2\/posts\/2886\/revisions\/3043"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.bham.ac.uk\/cityredi\/wp-json\/wp\/v2\/media\/2888"}],"wp:attachment":[{"href":"https:\/\/blog.bham.ac.uk\/cityredi\/wp-json\/wp\/v2\/media?parent=2886"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.bham.ac.uk\/cityredi\/wp-json\/wp\/v2\/categories?post=2886"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.bham.ac.uk\/cityredi\/wp-json\/wp\/v2\/tags?post=2886"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}