119-409: [REDACTED] A93 [REDACTED] A944 [REDACTED] A96 The Aberdeen Western Peripheral Route (AWPR), unofficially also the City of Aberdeen Bypass , is a major road that wraps around the city of Aberdeen , Scotland . The road stretches north from Stonehaven through Kincardineshire and crosses both the River Dee and River Don before terminating at Blackdog. The main stretch of
238-594: A "a small number of redundancies" in its construction and projects team as a result of Carillion's collapse. The impacts of Carillion's collapse extended over a year: in January 2019, construction equipment hirer Hawk Plant went into administration after losing around £800,000 from the collapse of Carillion and a problem contract in Sierra Leone; also in January 2019, piling contractor Van Elle reported pretax profits down 54% to £2.4M as turnover fell 18% to £42.9M in
357-607: A 'smokescreen' for its own poor payment record. Four companies in Lagan Construction Group went into administration owing £21M in early March 2018 partly as a result of Carillion's insolvency; tightened credit terms and requests for upfront payments had affected cashflow. Similarly, 55-strong Chippenham-based flooring contractor Polydeck blamed Carillion "tailwinds" after it went into administration on 25 May 2018. Cheshire-based civil engineering contractor D G Cummins lost £1.8M owed by Carillion for work undertaken on
476-805: A 60% stake in Rokstad Power Corporation, a Canadian transmission and distribution business, for £33M. Carillion acquired 100% of the Outland Group, a specialist supplier of camps and catering at remote locations in Canada, in May 2015 and a majority stake in Ask Real Estate, a Manchester -based developer, in January 2016. In 2009, Carillion was revealed as a subscriber to an illegal construction industry blacklisting body, The Consulting Association (TCA), though its inclusion on
595-786: A Carillion subcontract at the Midland Metropolitan University Hospital . On 29 January 2018, CCP, a Slough -based dry lining contractor with a 350-strong site-based labour force, called in liquidators due to debts owed by Carillion. Already financially troubled ground engineering business Aspin Group Holdings went into administration in February 2018 as part of pre-pack deal after the group and its subsidiaries were owed around £800,000 by Carillion (bought by private equity firm Sandton Capital Partners, Aspin subsequently went into administration, with
714-526: A built-up area which caused serious safety concerns. The idea for a new bypass for Aberdeen was first proposed in 1952. Following decades of discussion and low-level planning, the Scottish government's plan to construct the bypass were announced in 2003, by the then first minister. In 2012, following lengthy legal delays, the project was approved. Construction began in February 2015, supported by both Aberdeen and Aberdeenshire councils in addition to NESTRANS ,
833-414: A fifth on the same period in 2017, with small to medium-sized companies and specialist subcontractors particularly hard hit, having to write off virtually everything owed to them by Carillion. Total construction insolvencies in 2018 were up 13% to 2,954 companies, according to law firm Nockolds, who said fallout from Carillion's collapse had contributed to a spike in businesses folding. Law firm RPC made
952-594: A four-mile (7 km) stretch between Parkhill and Blackdog opened in June 2018, and the Balmedie to Tipperty section soon after during August 2018. Carillion's collapse and weather interruptions delayed overall completion of the project; in March 2018, Balfour Beatty said the project would open by the second half of the year, a date which then slipped to December 2018, partly due to problems involving concrete cladding panels at
1071-441: A junction of major importance. The junction has become a spotlight of criticism due to reoccurring accidents which have included collisions between cars and HGVs in addition to vehicles overshooting the roundabout. The design of the roundabout requires motorists to gradually slow down well in advance of reaching it, collisions at this part of the bypass have been attributed by Transport Scotland to speeding and ignoring road signs. It
1190-612: A lay-by part way up the hill. Over the summit of the Cairnwell Pass, the road enters Aberdeenshire and the standard of the carriageway improves considerably, wider and better surfaced than the 42 miles (68 km) in Perth and Kinross. Descending now, it runs along deserted Glen Clunie alongside the Clunie Water for 8 miles (13 km) to Braemar . So far the road has been running roughly north, but here it turns east for
1309-818: A legal ruling that the group's collapse did not warrant "special circumstances" protection. In January 2019, Unite reported that worker redundancy payment negotiations had been made "unduly complicated" because of Carillion's complex corporate structure, and said the total amount of redundancy pay awarded to ex-Carillion workers was expected to rise to £65M. A week after the liquidation, PwC agreed with Network Rail that Carillion Construction employees to its projects would have their wages guaranteed through to at least mid April 2018, while Carillion suppliers on Network Rail projects would also be paid. 150 Carillion workers employed on smart motorway joint ventures with Kier were set to become Kier employees; 51 Carillion employees working on seven HS2 civil engineering packages awarded to
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#17327721800561428-588: A locally managed liquidation. By the end of 2018, 91 Carillion companies had been liquidated. In April 2018, the Official Receiver estimated the total liabilities of the then 27 liquidated UK companies at £6.9 billion, a figure over three times higher than given in the Group's accounts at the end of 2016. On 6 August 2018, the Insolvency Service announced the end of the trading phase of
1547-613: A lower cost of between £35 and £45 million while Galliford Try sought to raise £150 million and cut its dividend to support its balance sheet claiming Carillion's collapse had "increased the group's total cash commitments on the project by in excess of £150m". In August 2018, Balfour Beatty said its liabilities on the Aberdeen project had risen by a further £23 million and were forecast to reach £135 million. In November 2018, Galliford Try said delays would cost an extra £20 million, taking its total project hit to £143 million. The first section,
1666-494: A merger with rival Balfour Beatty . Three offers were made; the last bid, which valued Balfour Beatty at £2.1 billion, was unanimously rejected by the Balfour Beatty board on 19 August 2014. Balfour refused to allow an extension of time for negotiations that could have prompted a fourth bid. Carillion announced later that day that it would no longer pursue a merger with its rival. In December 2014, Carillion acquired
1785-509: A new CEO led to the appointment of Andrew Davies , CEO of Wates – announced on 27 October 2017 – with Davies set to join the firm in April 2018). As a result, the contractor was demoted from the FTSE 250 Index , and five directors (including Howson and finance director Zafar Khan ) left the company as it tried to refinance. On 27 September 2017, a Middle Eastern firm was said to be considering
1904-749: A possible break-up of the Big Four accounting firms . A separate report by the Public Administration and Constitutional Affairs Select Committee , in July 2018, blamed the UK government for outsourcing contracts based on lowest price, saying its use of contractors such as Carillion had caused public services to deteriorate. Carillion was created in July 1999, following a demerger from Tarmac , which had been founded in 1903. Tarmac focused on its core heavy building materials business, while Carillion included
2023-415: A pressure point on the bypass due to cost-cutting involved in its construction, being deemed necessary at the time by designers due to the topology of the area, local roads and streams discounting the possibility of an overpass which would possibly incur tens of millions of pounds in additional costs. Reluctance from local landowners resulted in project engineers having to work within a very small footprint for
2142-470: A rescue deal agreed, with a potential administration process set to start on 15 January 2018. The Financial Times later reported Carillion had just £29M in cash when it collapsed, and would have run out of cash by 18 January 2018. Consultants PricewaterhouseCoopers (PwC) and EY had both rejected roles as administrators amid concerns they would not be paid. On 15 January 2018, the BBC reported Carillion
2261-583: A safe path for people using the Deeside Way to cross it. Due to a high number of road traffic accidents, traffic lights were added to the South Kingswells roundabout in early 2020. In total the bypass consists of nine junctions, two of which are on-grade. However all means of getting on and off the AWPR involve the use of slip roads as opposed to direct intersections which are found on the rest of
2380-604: A series of acquisitions to become the second largest construction company in the United Kingdom, was listed on the London Stock Exchange , and in 2016 had some 43,000 employees (18,257 of them in the United Kingdom). Concerns about Carillion's debt situation were raised in 2015, and after the company experienced financial difficulties in 2017, it went into compulsory liquidation on 15 January 2018,
2499-404: A takeover bid. Two days later, it was revealed that Carillion's losses for the six months ended 30 June 2017 totalled £1.15 billion, following a further write down of £200M relating to its support services division. In September 2017 Keith Cochrane told investors that the business had accepted too many projects which turned out unprofitable and for which the amount paid was insufficient for
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#17327721800562618-404: A training contract with a government department or agency. In June 2018, 776 out of 1148 had been re-employed or moved into full-time education, 225 were seeking future work and 147 had become disengaged. Construction apprentices made up 341 of the 356 people made redundant in the week reported on 30 July; Unite said these redundancies reduced UK construction apprenticeship numbers by 1.6%, while
2737-567: Is a turn off to the left via a slip road. Southbound traffic can also come off the dual carriageway to a crossroads and then turn right onto a short stretch of the A90 which passes under the flyover, both of these lead to the Stonehaven roundabout. It is a large three-lane intersection which also provides access to the B979, but most importantly is the starting point of the AWPR. Traffic continuing along
2856-429: Is a very sad day for Carillion, for our colleagues, suppliers and customers that we have been proud to serve over many years. [...] In recent days however we have been unable to secure the funding to support our business plan and it is therefore with the deepest regret that we have arrived at this decision. We understand that HM Government will be providing the necessary funding required by the Official Receiver to maintain
2975-458: Is cleared for improvement. Heading eastbound from Cleanhill takes motorists along the A956 Spur, a special road extension of the primary route which originally started as a trumpet junction on the old A90 that proceeded into Aberdeen. This is still the case today, however the trumpet has since been demolished and replaced with a signal-controlled diamond interchange that provides slip roads onto
3094-530: Is designated as part of the A90, with the original A90 now renamed the A92, which now connects with the AWPR at both of its ends. The road is predominantly rural, crossing mainly through farmland and forest while skimming past built-up areas. The AWPR is legally classed as a special road by the Scottish Government . This means that the bypass is governed under motorway restrictions. The road itself
3213-536: Is near-motorway grade with all junctions being grade-separated with adjoining slip roads (the only exception being the Cleanhill roundabout), a full-length continuous concrete step barrier , large road signage, legal prohibition of stopping and reversing alongside restriction to Class I and II vehicles, barring non-motorway traffic from using the bypass altogether. The road however lacks hard shoulders and instead includes emergency lay-bys. The regulations governing
3332-525: The Investors Chronicle commented that its financial problems were not a secret and had been known for at least two years, with little working capital, shrinking amounts due to customers, and rising monies withheld by clients. On 24 October 2017, it was reported that Carillion was preparing to sell its healthcare facilities management business to Serco (the deal included 15 contracts, with annual revenues of approximately £90M for which Serco
3451-586: The Building Engineering Services Association and the Electrical Contractors' Association found that 80 of them were collectively owed £30 million by Carillion, an average exposure of £375,000. Average debts owed to micro businesses (fewer than 10 employees) were £98,000; medium-sized businesses (50 to 249 employees) were owed on average £236,000, with the most exposed firm owed almost £1.4M. Only £31M of
3570-595: The Cairnwell Pass , the road reaches its maximum elevation of 670 metres (2,199 ft) above sea level, which makes it, at this point, the highest public road in the United Kingdom. The southern approach to the Cairnwell Pass used to include a notorious double hairpin bend with steep gradients known as the Devil's Elbow. This was bypassed by a new stretch of road in the early 1970s but the old hairpin bends and World War II anti-tank traps can be accessed on foot from
3689-894: The Grampian Mountains by way of Glenshee , the Cairnwell Pass and Glen Clunie to Braemar in Aberdeenshire . At Braemar, the road then switches east down the strath of the River Dee before crossing the A90 and terminating in Aberdeen . Leaving Perth, the A93 continues through the planned 19th-century village of Guildtown before crossing the River Isla and passing the Meikleour Beech Hedges . 5 miles (8 km) north lies Blairgowrie and Rattray ,
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3808-451: The M6 motorway widening contract junctions 16–19, and, facing a £600,000 tax demand, had to file a notice of intent to enter administration, endangering 50 jobs. In October 2018, a report from accountant Moore Stephens said Carillion's liquidation had triggered a 20% spike in the number of UK building firms becoming insolvent: 780 companies fell into insolvency in the first quarter of 2018, up
3927-649: The Midland Metropolitan University Hospital (where 70 Carillion staff lost their jobs) in Birmingham, with the project 18 months late and likely to cost an additional £125M. However, in June 2018, banks financing the project withdrew their support, and HM Treasury cancelled the PFI contract for construction of the hospital, leaving the NHS Trust to search for new investment and pushing the completion date back to at least 2022. Market testing with contractors showed there
4046-667: The National Audit Office , £2.6bn in pension liabilities have to be covered by the Pension Protection Fund . Carillion operated 13 UK defined benefit pension schemes with 27,000 members. Following the liquidation, 12 of these schemes entered a Pension Protection Fund assessment period. In January 2018, the contracts previously awarded to Carillion for smart motorway projects were taken on by Kier Group. Rival contractors looked to take over Carillion's two major hospital PFI projects. Skanska targeted
4165-654: The Specialist Engineering Contractors Group said Carillion's failure "could lead to many smaller firms going under". Up to 30,000 small businesses were reportedly owed money by Carillion, who used 'delay tactics' and withheld payments to suppliers, sometimes for up to 120 days. Within 24 hours, equipment hire firm Speedy Hire and piling contractor Van Elle were reporting potential losses of £2M and £1.6M respectively; Van Elle also reported uncertainty relating to £2.5M worth of future work for Network Rail. A survey of 133 companies by
4284-584: The West End of the city. The A90 continues overhead with long slip roads providing entry to and from the A944. Tailbacks and collisions at this junction resulted in the addition of traffic lights to the roundabout which was carried out in the summer of 2020, later than expected due to the COVID-19 pandemic . The lack of existing infrastructure prior to construction resulted in no concessions having to be made during
4403-863: The facilities management services sector. In September 2001, Carillion acquired the 51% of GT Rail Maintenance it did not already own, thereby creating Carillion Rail. Carillion Rail carried out track renewals on the rail network , and contract work for Network Rail . In August 2002, Carillion bought Citex Management Services for £11.5M and, in March 2005, it acquired Planned Maintenance Group for circa £40M. After that, Carillion went on to acquire two more United Kingdom support services firms: Mowlem , for circa £350M in February 2006, and Alfred McAlpine , for £572M in February 2008. Then, in October 2008, Carillion bought Vanbots Construction in Canada for £14.3M. Carillion bought Eaga , an energy efficiency business, for £306M in April 2011. However, by December 2011
4522-614: The 1930s. By the 1950s, Anderson Drive had been swallowed into the rapidly-expanding Aberdeen with the creation of new post-war suburbs such as Northfield , Mastrick and Garthdee . The road was unsuitable for heavy goods vehicles as they could not cross the Bridge of Dee at its south end, therefore large vehicles were forced to detour along the B9077 across King George VI Bridge before returning to Anderson Drive via Broomhill Road, resulting in local and strategic traffic coming into conflict in
4641-474: The 60-mile (97 km) descent to the North Sea at Aberdeen . 10 miles (16 km) from Braemar, it passes Balmoral Castle , then continues through Ballater , Dinnet , Aboyne , Kincardine O'Neil , Banchory and Peterculter before entering Aberdeen. A section of the A93 near Crathie collapsed on 29–30 December 2015 due to pressure from the overflowing River Dee . The Dee had burst its banks due to
4760-487: The A90 as a whole. Craibstone consists of a diamond interchange and three-lane roundabout which are connected by a short trunk spur. Access to the A96, B984 and C89C is made available here. The A96 continues north-west into Aberdeenshire, the dual carriageway segment ends at Port Elphinstone however the road continues to Inverness where it terminates at Raigmore . The citybound A96 takes motorists back into Aberdeen where it meets
4879-701: The A90 can here turn onto the Fast Link while gaining speed through a steep uphill section. The bypass proceeds sharply northbound; with the exception of some isolated dwellings and occasional local overpasses, the road continues without pause through fields. Still in Aberdeenshire, the Stonehaven Fast Link terminates at the Cleanhill roundabout. It is the only junction in Scotland where three special road segments converge at one at-grade point,
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4998-400: The A90. Signs listing prohibited classes of traffic are displayed on all access points to the AWPR. Ordinary dual carriageway standards cease and the statutory instrument takes over on entering any one of these slip roads. Heading north as the Stonehaven bypass, the A90 gradually sweeps around the town towards the east before traffic bound for the AWPR can cross a large flyover, from here there
5117-667: The A92 at the Haudagain roundabout and terminates at Mounthooly in the city centre. Within the vicinity of Craibstone, access is supplied to Aberdeen International Airport along the B984 Argyll Road, Craibstone Park and Ride , Bucksburn , Dyce and the P&;J Live . The Craibstone roundabout was one of the first sections of the bypass to open in order to continue the traffic flow through the A96. The A90 continues past Craibstone and Kirkhill Forest before curving back east across
5236-568: The A92. Like the Stonehaven Fast Link, the A956 Spur moves in a straight line that is flanked by rural farmland on both sides. On arriving at Charleston, motorists enter the city proper and the bypass terminates. Primary routes then head north, south or east through the A92 and the citybound A956. Continuing north along the A90 will take motorists across the River Dee and into Aberdeen along the Southern Leg. The A90 then slopes uphill between
5355-413: The AWPR are not those of a standard primary A-road and are very similar to those found on motorways, however the road is not classed as a motorway under its statutory instrument. The Balmedie to Tipperty road is not part of the bypass despite being built in conjunction with it and therefore not bound by the AWPR's statutory instrument, making it an ordinary dual carriageway. First announced in January 2003,
5474-645: The AWPR in late 2014. The initial shortlist of four preferred bidders was reduced to three with the withdrawal of the Scotia Roads Group consortia in September 2013. This left Granite City Roads (Macquarie Capital Group Limited: Vialia; Iridium; Kier Project Investment Limited), North East Roads Partnership (Cintra Infraestructuras, S.A.; John Laing Investments Limited) and Connect Roads ( Balfour Beatty Investments Limited ; Carillion Private Finance (Transport) Limited ; Galliford Try Investments Limited ) as
5593-565: The AWPR is 22 miles (35 km) in length. The AWPR also includes the 4-mile (6.4 km) A956 spur that links the bypass to the A92 . The construction of the AWPR was coupled with extensive upgrades to the A90 continuing north with the 9-mile (14 km) Balmedie to Tipperty dual carriageway , supplanting the existing road which was subsequently detrunked and is now the B977. The AWPR's primary route
5712-549: The Balfour Beatty/Galliford Try joint venture for "significant damage" caused to some local roads by the transport of thousands of tonnes of materials to the AWPR site. Following a local campaign, a new shared use path was opened allowing users of the Deeside Way to cross the AWPR safely in March 2019. Despite a route being included in public consultations back in 2014, the bypass had opened without
5831-810: The CEK joint venture were offered the opportunity to join Kier/ Eiffage . Nationwide Building Society took on around 250 former Carillion employees engaged in facilities management work at its offices and branches. Around 1,000 Carillion staff engaged on prison facilities management work for the Ministry of Justice were transferred to a new government-owned company, 22 workers from Carillion's power network business joined J Murphy & Sons , around 60 staff at Carillion's Newcastle-based legal services arm joined Clifford Chance , and 700 employees engaged on Network Rail projects transferred to Amey Rail; Amey paid
5950-650: The Craibstone and Goval junctions which was due to concrete problems at the River Don Crossing. The entire road became operational on 19 February 2019 - later than planned partly due to weather issues and the January 2018 collapse of contractor Carillion . Giving evidence to the Rural Economy and Connectivity Committee in December 2018, a spokesman for Balfour Beatty agreed that the total cost of
6069-582: The Don Crossing), was delayed until after Christmas 2018. With the final section still unopened in the New Year at the end of January 2019, Scottish transport secretary Michael Matheson demanded an urgent meeting with Balfour Beatty and Galliford Try bosses over the continuing delays. The final section opened on 19 February 2019, bringing the four year construction period to a close. In May 2018, Aberdeenshire Council said it would seek compensation from
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#17327721800566188-622: The First Minister, with the first overhead line safety systems being erected and Flannery Plant heavy machinery preparing for the works start. The first major traffic management systems for the works included a new 30 mph speed limit around the local roads in the vicinity of Dyce, Goval and Parkhill. In addition, traffic lights and lane closures on the A93 North Deeside Road at Milltimber Brae during May and June were implemented to allow for trial digs and work concerning
6307-462: The Insolvency Service. In November 2019, the liquidators said they were reportedly close to clawing back around £510M from asset sales, insurance and debt recoveries. The liquidation announcement had an immediate impact on 30,000 subcontractors and suppliers, Carillion employees, apprentices and pensioners, plus shareholders, lenders, joint venture partners and customers in the UK, Canada and other countries. Subcontractors were said to be vulnerable:
6426-580: The Milburngate development in Durham . In a further profit warning, on 17 November 2017, Carillion said it would breach banking covenants the following month, with full year debts set to reach up to £925M. A recapitalisation plan was to be implemented in early 2018. The company's share price fell over 50% in early trading to just 18p – valuing the business at £73M. Unite the Union sought urgent talks with
6545-418: The NHS Trust revealed that the cost of rectifying serious faults, including replacing non-compliant cladding installed by Carillion, was holding up plans to restart and finish the £350M project; with the project further delayed, the Trust was considering invoking a break clause to terminate the PFI contract. On 24 September 2018, it was reported that the government would step in to terminate the PFI deal, taking
6664-453: The Official Receiver announced an initial 377 redundancies; a further 994 redundancies were announced during February, 337 in March, 554 in April, 75 in May, 43 in June, 399 in July, and 9 in August, bringing the redundancy total by this date to 2,787 – 15% of the pre-liquidation workforce. In parallel, 13,945 jobs had been safeguarded through transfers (76% of the pre-liquidation workforce), while 1,274 employees left
6783-497: The Official Receiver established a specialist team and said former staff should receive the necessary information within seven days of being made redundant or transferring to a new employer. In July 2018, Unite launched legal action on behalf of 27 members made redundant at GCHQ in Cheltenham claiming proper consultation had not taken place; in July 2021, on behalf of 263 members seeking compensation over Carillion's failure to inform and consult them on redundancy terms, Unite secured
6902-412: The Official Receiver £2.1M for Carillion's rail contracts. French engineering group Egis took on Carillion's M40 upkeep motorway contract, safeguarding the jobs of around 95 Carillion workers. Carillion Welding was acquired by Rail Safety Solutions Ltd, saving 63 jobs. However, the transfer of some overseas-born staff to new employers was hampered by strict application of immigration rules that required
7021-457: The River Don Crossing. Motorists reach Parkhill after crossing the River Don and entering Aberdeenshire again, it is the northernmost junction on the AWPR. The A90 is connected to the A947 on the northbound side while the B977 serves southbound traffic from Blackdog. Both sides consist of long slip roads connecting to roundabouts which can then be used to head back south to Dyce and Bridge of Don or north to Newmachar . Unlike other intersections on
7140-403: The Scottish Parliament on 3 March 2010. An appeal was made to the Court of Session based on points including the limited remit of the PLI. The appeal was dismissed, a further appeal was then made to the Inner House, the appellate division of the Court of Session. A yet further appeal was afterwards made to the UK Supreme Court . This appeal also failed to overturn the decision to proceed with
7259-421: The South Kingswells or Craibstone junctions to come on or off the A90. The C89C also forms the locally-named "Kingswells Bypass" which can be used to reach the A944. The slip roads at this junction do not merge into the road, they continue along the sides to Craibstone; making this section of the bypass the only one with six lanes in total. At this point, the Northern Leg of the AWPR begins. The largest junction on
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#17327721800567378-431: The UK Government had significantly reduced the feed-in tariffs for green energy and Carillion had to rationalise the business. In December 2012, it acquired a 49% interest in The Bouchier Group, a company providing services in the Athabasca oil sands area, for £24m. Then, in October 2013, the company bought the facilities management business of John Laing . In August 2014, the company spent several weeks attempting
7497-417: The airport. In August 2019, it was announced that service 757 would be withdrawn. In April 2020, the 747 service between Stonehaven and the airport was withdrawn. There is now no public transport on the AWPR. A93 road (Great Britain) The A93 is a major road in Scotland and the highest public road in the United Kingdom . It runs north from Perth through Blairgowrie and Rattray , then through
7616-445: The alternative design had been considered and discounted by the design team. Financial close on the project with the winning bidder, now known as Aberdeen Roads Limited was achieved on 15 December 2014. It was also announced that lifetime costs for the project were down by £220 million thanks to innovative new features on the AWPR such as more durable long-life road surfacing. Aberdeen Roads Limited will construct and operate and maintain
7735-420: The announcement of the winning bid from the site of construction works at Findon Junction. A series of public exhibitions around Aberdeen and Aberdeenshire in June 2014 were also announced by Transport Scotland in order to inform the public regarding progress, advance works, the route and environmental aspects. An £8 million "pre-start works agreement" was announced between Transport Scotland and Connect Roads, with
7854-406: The bidder starting fencing, environmental surveying and ground investigations ahead of the main works contract commencing later in the year. Other site clearing works and environmental works, such as the relocation of protected badgers also continued. The completion of construction works was anticipated in the later half of 2017, about 6 months before the original timescale. The Craibstone roundabout
7973-465: The business through finding new work, retirement or for other reasons; a year after the liquidation, the total number of redundancies was reported as 3,038. Around £50M in redundancy payments had been paid up to September 2018, with the final bill likely to reach £65M. After staff made redundant claimed PwC did not provide information necessary for them to claim redundancy pay and statutory notice pay, causing financial hardship and threatening mortgages,
8092-451: The bypass could be "in the area of" £1 billion. The road was designed to have a positive impact on traffic along routes which are congested during rush hour, particularly Aberdeen's Anderson Drive, King Street and Union Street. Other intentions of this project included slight reductions in traffic congestion on local bridges heading into Aberdeen city centre, which is sandwiched between the Rivers Dee and Don, this would be achieved by reducing
8211-415: The bypass, Parkhill is spread out over a wide area. The road continues east back into the city's border before crossing back into Aberdeenshire at Blackdog. The northern terminus of the AWPR, it is a roundabout interchange similar to South Kingswells junction; however it serves more unclassified routes. Access to Blackdog is provided here alongside the C1C that takes drivers to Potterton and Belhevie. Despite
8330-480: The company's extended supplier payment terms and its use of ' reverse factoring ', argued Carillion was more leveraged than it reported, and predicted a "profit shortfall" was likely. By October 2015, Carillion had become hedge funds ' most popular share to ' sell short ' as analysts questioned the lack of growth and rising debt. From having less than 5% of its shares shorted at the beginning of 2015, over 20% of Carillion shares were on loan to hedge funds by June 2016;
8449-455: The company's road maintenance and facilities management contracts. Canadian FM firm BGIS, a subsidiary of Brookfield, negotiated to take on 2,500 workers engaged on UK hospital, education, justice, transport and emergency services contracts, but the negotiations failed on 8 March 2018. Out of nearly 1200 apprentices affected by Carillion's liquidation, around a third – 419 – were still without work in early April 2018; only two had been offered
8568-472: The company's share price fell 19% over the same period. On 10 July 2017, a Carillion trading update highlighted a £845M impairment charge in its construction services division, mainly relating to three loss-making UK PFI projects and costs arising from Middle East projects. Chief executive Richard Howson (appointed CEO in December 2011) stepped down but was retained as operations director, with Keith Cochrane temporarily becoming CEO (Carillion's search for
8687-501: The company, concerned about the future of around 1,000 Carillion workers plus others employed by subcontractors and agencies. Major shareholder Kiltearn Partners halved its shareholding incurring a loss of over £40M. On 20 December, Carillion announced it had brought forward the arrival of new CEO Andrew Davies to 22 January 2018. On 3 January 2018, it was reported that the UK Financial Conduct Authority
8806-711: The conduct of the firm's directors, its auditors ( KPMG ), the Financial Reporting Council and The Pensions Regulator , and about the UK Government's relationships with major suppliers working on private finance initiative (PFI) schemes and other privatised outsourcing of public services (in October 2018, the UK Government said no new PFI projects would be started). It also prompted legislation proposals to reform industry payment systems, consultations on new government procurement processes to promote good payment practices, and proposed FRC reforms to
8925-545: The contractor to complete the project. More than a year later, in November 2019, the defective cladding issue remained unresolved. In March 2020, the hospital NHS Trust revealed it was drawing up claims against Carillion's insurers and a Carillion subcontractor, Heyrod Construction. A delayed National Audit Office report into the government's handling of the Midland Metropolitan and Royal Liverpool hospitals
9044-514: The contractor, the total cost to the taxpayer would be very similar to the original plan. A follow-up investigation into the hospitals projects by the Public Accounts Committee was postponed in May 2020 due to the COVID-19 pandemic in the United Kingdom . The Lincoln eastern bypass project, originally awarded by Lincolnshire County Council to Carillion, was taken over by Galliford Try , adding £24M in costs and delaying
9163-427: The cost of work done ("we were building a Rolls-Royce but only getting paid to build a Mini "), and its management structure and internal organisation had been over-complex and lacking sufficient regard to contractual risk assessment and overly optimistic assumptions; as a result, the company had "burned through cash" trying to deliver to a high standard without assessing the possible implications. In September 2019,
9282-505: The crossing over the River Don. In December 2018, MSPs heard the final cost of the Aberdeen bypass would exceed £1 billion while a 20-mile (32 km) section of the route would open during the week of 10 December. The majority of the bypass was now open to motorists with the completion of the Stonehaven Fast Link and Southern Leg by mid-December. However the final 4.5-mile (7.2 km) section between Parkhill and Craibstone (which included
9401-465: The design process. From here, the bypass heads slightly north-east past Brimmond Hill . A half-diamond intersection that connects to the C89C Chapel of Stoneywood - Fairley Road, the only part of the AWPR that provides access to an unclassified road. It is also the only one on the AWPR where only traffic coming to and from the north have access, vehicles heading to or from the south must use either
9520-461: The effects of Storm Frank , which caused very severe flooding across Deeside. Carillion Carillion plc was a British multinational construction and facilities management services company headquartered in Wolverhampton in the United Kingdom, prior to its liquidation in January 2018. Carillion was created in July 1999, following a demerger from Tarmac . It grew through
9639-471: The estimated £1bn-plus owed by Carillion was covered by trade credit insurance. In late March 2018, Bury North MP James Frith hosted a meeting in Parliament attended by suppliers affected by Carillion's collapse; companies highlighted unpaid debts of between £250,000 and £2.7M. In August 2018, building services specialist NG Bailey announced a £2.2M exceptional loss for irrecoverable costs arising from
9758-493: The former Tarmac Construction contracting business and the Tarmac Professional Services group of businesses. At the time of demerger Sir Neville Simms was appointed executive chairman of the business. Simms stood down from his executive responsibilities in January 2001 but remained non-executive chairman until May 2005 when Philip Rogerson took over the chair. The name 'Carillion', a corruption of
9877-498: The government said the CITB had found new paid employment for 777 former Carillion apprentices. On 31 July 2018, The Guardian highlighted the matter: Unite assistant general secretary Gail Cartmail said: "This is an appalling way to treat these apprentices who should have become the backbone of the industry. To dump them and to destroy their training is an act of crass stupidity." In April 2018, Carillion's Wolverhampton headquarters
9996-475: The hospital into full public ownership, meaning a £180M loss for private sector lenders Legal & General and the European Investment Bank . This was confirmed on 26 September 2018, with completion of the hospital in 2020 (later delayed to autumn 2022) likely to cost an additional £120M, due to unforeseen issues left behind by Carillion. On 26 October 2018 Laing O'Rourke was confirmed as
10115-568: The largest town in Perth and Kinross , where the road crosses the River Ericht . 6 miles (9.7 km) up Glenericht it reaches the little village of Bridge of Cally and begins the long climb up into Glenshee. At this point, it climbs from Glenshee onto the moors of Glenbeg and the snow gates at Spittal of Glenshee , which are regularly closed in winter (which here can be from October to April) to prevent motorists becoming stranded overnight. At
10234-413: The liquidation, described by the Official Receiver as "the largest ever trading liquidation in the UK". Work on finalising Carillion's trading accounts and payments to suppliers, and investigations into the cause of the company's failure, including the conduct of its directors, continued. In December 2018, it was reported that former Carillion directors Philip Green and Richard Howson had been interviewed by
10353-454: The list was mainly due to its previous ownership of Crown House Engineering (acquired by Laing O'Rourke in 2004), and previous use of TCA by Mowlem (acquired by Carillion in 2006). Carillion made two voluntary submissions to the House of Commons' Scottish Affairs Select Committee , one in September 2012, and another in March 2013, relating to its involvement with TCA. In July 2014, Carillion
10472-649: The loss of 200 jobs, in July 2019). On 23 March 2018, 160-strong mechanical and electrical subcontractor Vaughan Engineering warned it faced administration after losing £650,000 on two Carillion projects; KPMG were subsequently appointed as administrators, making 83 employees in Broxburn , 43 in Newcastle and 28 in Warrington redundant. Vaughan collapsed owing £9.2M to its suppliers, though one supplier, Bmech, later claimed that Vaughan used Carillion's collapse as
10591-842: The most drastic procedure in UK insolvency law , with liabilities of almost £7 billion. In the United Kingdom, the insolvency caused project shutdowns and delays in the UK and overseas (PFI projects in Ireland were suspended, while four of Carillion's Canadian businesses sought legal bankruptcy protection), job losses (over 3,000 redundancies in Carillion alone, plus others among its suppliers), financial losses to clients, joint venture partners and lenders, to Carillion's 30,000 suppliers (some of which were pushed into insolvency), and to 27,000 pensioners , and could cost UK taxpayers up to £180M. It also led to questions and multiple parliamentary inquiries about
10710-585: The project's completion by six months to May 2020. The redevelopment of the Vaux Breweries site in Sunderland resumed, after a six-month delay following Carillion's collapse, in July 2018, with Tolent as the main contractor. Tameside Council 's 'Vision Tameside' project east of Manchester was taken over by Robertson Construction, but rising costs for this and other former Carillion projects meant 18 major investment projects were put on hold, while
10829-425: The proposed design for the interchange of the existing A90 dual carriageway and the new Fastlink section of the AWPR. A local farmer offered land for free to support an alternative design for the interchange, but Transport Scotland said changes at this point would add delay and jeopardise the now late completion date of 2017, this was due to road orders and other legal instruments having already been made. They also said
10948-679: The public services carried on by Carillion staff, subcontractors and suppliers. Six UK Carillion businesses, including Carillion plc and Carillion Construction Ltd, were liquidated in the first phase. On 19 January, Carillion (AMBS) Limited was placed in provisional liquidation, and on 25 and 26 January 2018 ten further UK companies went into liquidation. Another business went into liquidation on 2 February, followed by ten more on 16 February 2018. Two Carillion businesses in Jersey and Guernsey also went into liquidation, in January and March 2018 respectively. In June 2018, Carillion ( Qatar ) LLC went into
11067-485: The re-routing of utilities. Aberdeen Roads Limited published its first project update newsletter in the spring of 2015, detailing current and future works plus traffic management measures. Cost overruns on the project were a contributing factor to the January 2018 collapse of Carillion . Connect Roads joint venture partners Balfour Beatty and Galliford Try became jointly liable for additional cash contribution totalling between £60 and £80 million; Balfour Beatty estimated
11186-484: The region of £653 million. Transport Scotland quoted the scheme at £745 million in 2012 prices. The contracts for associated preparatory works were announced on the Public Contracts Scotland website in 2016. The contract award was announced on 11 June 2014 with Connect Roads, advised by Pinsent Masons , named as the preferred bidder. Advance works were then already underway, with Keith Brown making
11305-433: The remaining bidders. Keith Brown , the then Cabinet Secretary for Infrastructure, Investment and Cities also advised that the scheme may open in stages where possible in an effort to relieve existing traffic, with the announcement of the preferred bidder for the contract expected in the summer of 2014. The official estimate of the cost of the AWPR was initially between £295 to £395 million, although reported figures were in
11424-589: The remoteness of the junction, continual traffic flow from the A92 and the A90 can make this junction congested at times. The bypass and its restrictions end on arriving at Blackdog, from here motorists can continue north along the realigned A90 to Balmedie and Ellon or head south onto the detrunked A92 that will return to the city. In January 2019, two bus services were introduced on the AWPR by Stagecoach . Service 747 ran from Montrose to Ellon via Aberdeen Airport , with some services continuing to Peterhead . Service 757 ran from Newtonhill and Portlethen to
11543-457: The road opened in late 2016 and is now the B984. It was repeatedly argued that the road was important to keep the local economy active. This was in addition to alleviating traffic in the city centre and reducing road accidents. A public local inquiry (PLI) was held during 2008 to 2009. The PLI recommended adoption of the route and it was subsequently approved by Scottish Ministers, the route passed
11662-418: The road was approved by Scottish Ministers in late 2009 with the original costs estimated at between £295 million and £395 million. Construction on the AWPR began on 19 February 2015. The final section opened exactly four years later on 19 February 2019. Prior to the introduction of the AWPR, the only dual carriageway route heading from north to south was Anderson Drive, the city's original bypass constructed in
11781-558: The road. The creation of this junction has resulted in the re-alignment of the B979, drivers can still use this route to gain access to local roads in Aberdeenshire. Since the AWPR opened, Peterculter is now the only built-up area in the city which is outside of the road. The AWPR continues unabated through rural landscape before reaching South Kingswells. Unlike other junctions, this is an ordinary roundabout interchange such as those found on motorways. The A944 provides access to Westhill, Kingswells, Countesswells, Prime Four Business Park and
11900-431: The roundabout itself is slightly smaller than at Stonehaven and instead of three lanes; has two. From here, motorists can continue onto the Southern Leg of the AWPR via the A90 or the A956 Spur. The former heading north through Aberdeen's westernmost suburbs and the latter to the east into the south of the city. Either way, both directions will take drivers into Aberdeen's local authority area. Cleanhill has been recognised as
12019-506: The route for a period of 30 years. It was also announced that the consortium would be bringing forward the scheduled completion dates for the Craibstone and Dyce junctions by Autumn 2016, to be soon followed by the Balmedie to Tipperty dual carriageway by the first half of 2017, following requests from stakeholders. Scottish First Minister Nicola Sturgeon , along with Cabinet Secretary Keith Brown, Leader of Aberdeen City Council, Jenny Laing and Leader of Aberdeenshire Council, Jim Gifford attended
12138-560: The route. In 2010, the International School of Aberdeen moved to a new campus to make way for the construction of the road. The rebuilding of the school was funded by the Scottish Government. On 19 October 2012, a notice was published advising the market that expressions of interest for contractors to construct the route would be made at the beginning of 2013, this was with a view to commence construction of
12257-417: The site at Balmedie on 16 February 2015 to perform the ceremonial ground-breaking and officially commence the start of the construction programme. The main site office was constructed at Ury, Stonehaven with a local firm successfully tendering for and providing the temporary accommodation units. Clearance works for the Balmedie site office were performed during the official ground-breaking ceremony and visit of
12376-593: The six months to 31 October 2018 – with its CEO blaming Carillion's collapse for the profit slump. In September 2019, Antrim -based electrical subcontractor Blackbourne ceased trading, making 86 staff redundant, partly due to Carillion debts incurred on the Royal Liverpool University Hospital project. At the time of liquidation Carillion employed 18,257 people in the UK. Liquidator PwC began staff consultations over planned redundancies and transfers to new employers. On 2 February 2018,
12495-475: The statutory Regional Transport Partnership for Aberdeen and Aberdeenshire. By 2016, the total cost of the bypass was projected to have a significantly higher cost of £745 million. The AWPR was opened in segments, starting with between the Blackdog and Goval junctions which was soon followed by the Balmedie to Tipperty stretch. By December 2018, the AWPR had fully opened to motorists with the exception of between
12614-458: The suburbs of Peterculter and Milltimber, passing underneath the Deeside Way. Slip roads in both directions connect the AWPR to a roundabout and a short spur of the A93 on its western side, access to Aberdeenshire and the Cairngorms is gained here at a signalised crossroads. Southbound traffic utilises a flyover to join or leave the bypass, whereas northbound traffic turns on or off the side of
12733-542: The treatment of directors' bonuses paid in shares. The May 2018 report of a Parliamentary inquiry by the Business and the Work and Pensions Select Committees said Carillion's collapse was "a story of recklessness, hubris and greed, its business model was a relentless dash for cash", and accused its directors of misrepresenting the financial realities of the business. The report's recommendations included regulatory reforms and
12852-451: The volume of heavy goods vehicles that do not need to enter the city. The project was also intended to dial back the level of traffic heading towards Aberdeen Airport, the adjacent industrial estates at Dyce and the new Aberdeen International Business Park . Aberdeen City Council constructed a new six-lane extension of Argyll Road to connect Aberdeen Airport and the AIBP with the A96 and AWPR,
12971-408: The word ' carillon ' (a peal of bells), was intended to give the construction business a clearly defined, separate identity, and to distance it from its construction roots. It was proposed by London branding consultancy Sampson Tyrell (later Enterprise IG, part of WPP ). Under CEO John McDonough (formerly at Johnson Controls , and appointed Carillion CEO in January 2001), Carillion expanded into
13090-693: The workers to apply for permission to remain in the UK. MPs on the Home Affairs Select Committee , citing the case of Nigerian-born Hamza Idris, called on the Home Office to display flexibility and compassion, concerned that "scores" more workers might also be affected. In early February 2018, private equity groups Greybull Capital , Brookfield and Endless LLP were said to be interested in acquiring parts of Carillion that might be ringfenced for auction. On 8 February, PwC opened bidding for Carillion's rail division and several of
13209-438: Was announced shortly after the full opening of the AWPR that the road's contractor (Aberdeen Roads Ltd.) had been in consultation with Police Scotland and Transport Scotland, the outcome of this was the installation of rumble strips on all approaches to Cleanhill with an additional 50 mph speed limit within the immediate vicinity of the roundabout. Like all other junctions on the bypass, Cleanhill has been future-proofed and
13328-446: Was expected to be completed in the second half of 2016, alongside the Balmedie to Tipperty section a few months later. Main sub-contracts for the construction phase were published on the Public Contracts Scotland website, with most indicated to begin in January 2015. Transport Scotland also added a current activity page to their AWPR/B-T area, which detailed ongoing works on the project. Local campaigners in Stonehaven raised concerns over
13447-577: Was little appetite to bid under a private finance model, and that a PF2 bid would be over £100M more expensive and take six months longer. As a result, the NHS trust sought direct government funding, and on 16 August 2018, the government announced it would provide funding to complete the hospital. Laing O'Rourke negotiated about the Royal Liverpool University Hospital , but the project remained stalled. In early September 2018,
13566-982: Was one of eight businesses involved in the 2014 launch of the Construction Workers Compensation Scheme, though this was condemned as a "PR stunt" by the GMB union, and described by the Scottish Affairs Select Committee as "an act of bad faith". As one of the contributors to the scheme, Carillion reported in August 2016 "a non-recurring operating charge of £10.5M" representing the compensation and associated costs it expected to pay. In December 2017, Unite announced that it had issued High Court proceedings against 12 major contractors including Carillion. Concerns about Carillion's debt situation were voiced in March 2015 by UBS analyst Gregor Kuglitsch who highlighted
13685-414: Was published in January 2020. The report warned of possible further significant cost increases, particularly to rectify the badly built Liverpool project, and blamed Carillion for pricing the jobs too low to meet specifications. The two projects were expected to cost more than 40% more than their original budgets, and to be completed between three and five years late. However, due to effective risk transfer to
13804-695: Was put up for sale for £3M. The building was not owned by Carillion; it had leased it for around £440,000 per annum after it had been bought by an unnamed private investor for £6.165M in January 2016. In July 2018, it was reported that the building had been sold (for an undisclosed sum). At this date, some 140 Carillion staff were still based at the building, working for PwC; over 320 staff had either left or been made redundant. Carillion-owned assets set for auction in July 2018 include 12 car parking spaces at Wolverhampton 's Molineux Stadium , and development land in Rowley Regis and Loughborough . According to
13923-644: Was to go into liquidation (as opposed to administration), the company having issued a notice to the London Stock Exchange "that it had no choice but to take steps to enter into compulsory liquidation with immediate effect". The notice anticipated an application to the High Court for PwC to be appointed as Special Managers, to act on behalf of the Official Receiver . Carillion chairman Philip Green (appointed in May 2014) said: This
14042-498: Was to investigate the timeliness and content of Carillion announcements from December 2016 regarding its financial situation. Ten days later, the BBC reported that the company had "a matter of days" to avoid collapse and that Carillion was the subject of "high level government meetings". These meetings continued throughout the weekend of 13–14 January – covering the company's £900M debts, a £580M pension deficit, and many ongoing contracts for government departments – but broke up without
14161-485: Was to pay £47.7M – later cut to £29.7M – with Carillion losing £1bn from the value of its order book), and was planning to dispose of its Canadian operations to help shore up its finances. A week later, it was announced Carillion was selling its interest in developer Ask Real Estate to West Midlands developers Richardsons Developments for £14M. In December 2017, the Richardsons also acquired Carillion's interest in
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