Laura Sharman 23 January 2018

County agrees £10m Carillion exit deal

County agrees £10m Carillion exit deal image

Oxfordshire County Councils has paid £10.65m to terminate its contract with Carillion.

The payment will cover work already completed by the liquidated company such as school meals, property services and building work.

The settlement has enabled the council to officially end its contract from 1 February 2018, without the prospect of lengthy litigation.

Cllr Lorraine Lindsay-Gale, the council’s cabinet member for property, cultural & community services, said: ‘We brought the process forward and legally terminated our contact and will be taking over those services to ensure continuity.

'Carillion’s financial problems were not the original reason we wanted to end the contract. But as the scale of the company’s problems became apparent we are very glad we ended the contract when we did.

‘The reality is that if we had not ended the contract and settled with the liquidators, we would now be tied up in lengthy negotiations to end our involvement with the company. This early exit deal means we can get on with finding better ways to deliver services that Carillion provided.’

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