Industry speculation has emerged over the future of Carillion chief executive John McDonough.

McDonough has been at the company for three years and could be replaced by financial director Chris Girling.

One senior industry source said that McDonough had proved to be a capable chief executive and was now looking for a bigger challenge.

The source said: “John has added over a pound to the share price, restructured the organisation and completed a number of small acquisitions – now could be the time for him to move on.”

Carillion was unavailable for comment as Building went to press.