County council carries out property review to assess implications of Carillion collapse
Oxfordshire County Council is carrying out a detailed review of the costs and liabilities related to its properties following the Carillion collapse so that a robust financial plan can be considered by councillors in the autumn and included in the council’s budget.
Carillion provided services on behalf of Oxfordshire County Council including maintenance of council buildings; property services, and building work such as school extensions.
Members of the county council’s Audit and Governance committee will next week consider the process of assessing costs, liabilities and risks to assure themselves that the review of the county council’s properties is thorough and comprehensive.
Oxfordshire County Council made a net payment of £10.6m at the end of December 2017 to Carillion to cover work already completed as part of the final settlement to end the contract with the company, limiting any future financial liability.
However, the costs of dealing with ongoing construction and property maintenance problems following the Carillion collapse have not yet been calculated but are expected to be “very significant”. Surveys to assess defects in buildings including schools are continuing across the county council’s properties.
The county council’s Audit and Governance Committee meets on 25 July to review the process for estimating the council’s financial liabilities that emerged following the collapse of Carillion. The council’s Cabinet is expected to receive an assessment of the costs in the autumn, along with a long-term plan for dealing with the problems identified in surveys.