Carillion "re-engineers" supplier deals

The company’s search for efficiency improvements, part of a bid to save £140m by 2013, have seen several suppliers being pressured into handing back 20% of the value of previously agreed work.

Carillion is working to reduce its list of suppliers from 25,000 companies to 5,000.

Last month Carillion signed a memorandum of understanding with the government to “re-engineer procurement and service delivery” across its support services contracts.

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