Firm had been looking after thousands of soldiers’ homes

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One of the firms working with Carillion on its contract to look after thousands of homes for soldiers and their families has said it expects lay-offs to be made as a result of the firm’s collapse.

The firm has been working with Amey in a team called CarillionAmey looking after close to 50,000 homes as well as repairing and maintaining dozens of buildings at RAF bases, army garrisons and other defence site across the UK.

Called the National Housing Prime Contract, which was awarded as a five year in 2014 worth £626m, and four regional prime contracts, the work for the Defence Infrastructure Organisation is due to run until next year with an option to extend for a further five years.

Tim Hancock, chief executive at support services firm Tenon FM, a firm involved with Carillion’s work with the MoD, said some of those working on the schemes would lose their jobs.

He added: “There will be redundancies – no doubt about it. Other contractors will be circling now. Those who take a punt might do well out of it, but it’s unclear who’s big enough to afford it, and in my previous experience, even when a contract was picked up there were redundancies. It’s brutal – it’s a punt, not a science.”

Carillion’s direct employees who have been seconded out to subsidiaries and joint venture partners are expected to be paid in January, he said, with work to be done on transferring those staff over to the JV partners.

In a statement, Amey said it had been working on a contingency plan with defence bosses and the Cabinet Office for the past few weeks.

Under the terms of the CarillionAmey joint venture, Amey will now continue to provide the services previously provided by CarillionAmey.

“Amey is fully prepared to continue the service obligation of the contracts without adverse effect on the employees of the joint ventures or the supply chain,” it added.