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Cracked Beams Brought The House Down: Now We Know What Finally Killed Carillion

Royal Liverpool University Hospital
Royal Liverpool University Hospital

What do they say about truth being stranger than fiction? Testimony before a House of Commons select committee Tuesday revealed it was literally cracked joists that bought the house down on Carillion, the Wolverhampton-based contractor that fell into administration in January.

Eight cracked transfer beams at Royal Liverpool Hospital were among the problems causing delays — and adding £20M to costs — that finally precipitated the contractor's demise.

The Royal Liverpool was one of four troubled contracts that left Carillion £200M out of pocket. The contracts included the new Midlands Metropolitan Hospital, Smethwick. Problems caused cashflow to dry up rapidly, Construction Enquirer reports.

Carillion Chairman Phillip Green told MPs on the Business, Energy and Industrial Strategy Committee and Work and Pensions Committees that the firm was afflicted by a small number of contracts that went very badly wrong, and that this precipitated the financial problems in January.

“I have full and complete responsibility for the collapse, not culpability," Green said.