Delays on Scotland’s two biggest civil engineering projects have been blamed as contractor Galliford Try begins redundancy consultations after revealing it is to shut much of its operations north of the border.
Over-runs on the Queensferry Crossing and Aberdeen Western Peripheral Route (AWPR) are expected to result in a profits slump estimated at £30-40m.
In a profit warning last month the company announced a review of its construction business in the wake of the loss-making schemes. A restructuring programme will concentrate on markets with “sustainable prospects” for growth and profit and around 350 jobs may go, most of them in Scotland.
Describing the move as “regrettable but unavoidable”, the company said the biggest element of the proposed reorganisation will potentially see its Infrastructure unit in Scotland close. “It is a matter of record that for some time our business has sustained considerable losses on two major infrastructure projects within Scotland,” a spokesman said.
The company added that it remained “fully committed” to its Morrison Construction building operation in Scotland.
The Aberdeen bypass has been plagued by controversy including delays, concerns over worker safety and the collapse of Carillion, one of the three contractors that made up the construction consortium.
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©Scottish Plant. Article posted 1/5/2019