Public sector clients are taking a second look at the contracts they let following Carillion’s implosion in January.

The collapse of the country’s second-largest construction firm has sent shockwaves across town halls with those in charge of the purse strings now wanting to make sure their schemes are not left high and dry if a similar firm goes bust.

Morgan Sindall’s chief executive John Morgan warned in February that customers, “especially the public sector”, were looking more closely at their suppliers’ balance sheets in the wake of Carillion’s failure. He said: “They’re asking many more questions about the balance sheet and about movements of the balance sheet between reporting periods. It’s logical – the changes in recent weeks will have cost the public sector purse dear.”

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