ConDig (16-Jan-18).  Houston-based engineering and construction company KBR said it expects its joint venture project in the UK with partner Carillion to be uninterrupted following the UK-based construction company’s financial demise.

KBR said it has been undergoing contingency planning over the past three months and is well-positioned to carry out operations under the contract.

A joint venture between KBR and Carillion landed a £1.45 billion (US$1.9 billion), 8-year construction project with the UK’s Ministry of Defence in April 2006.

Under the 35-year deal, Aspire Defence Limited is set to build or refurbishment 562 buildings and demolish 496 others across army garrisons at Salisbury Plain and Aldershot.

It also features a wide range of support services including catering, cleaning, transport, estate management, document production and handling, stores and waste disposal.

“The JV has been carrying out successful service operations for the Ministry of Defense since 2006, offering high quality design, construction as well as maintenance services to the British Army,” KBR said in a statement on Tuesday.

It comes as Carillion filed for compulsory liquidation on Monday after it said it was unable to secure the funding to support its business plan.

The government will step in with funding to ensure Carillion’s 450 public services contracts continue.

But the fallout from the liquidation is now set to hit suppliers and subcontractors, with estimates suggesting they could be owed around £2bn by Carillion.

It has been reported that subcontractors should be offered some protection on most public jobs by the use of Project Bank Accounts.

It is also understood that UK business Secretary Greg Clark has ordered the Insolvency Service to fast-track and broaden its probe into the actions of Carillion’s past and present directors.