Carillion suppliers cut prices by 20%

Published:  08 February, 2011

WOLVERHAMPTON: Suppliers to Carillion, one of the UK's leading support services and construction companies, have cut their prices by up to 20% to retain work with the company.

The Sunday Telegraph said it had seen documents showing some suppliers have offered to discount rates already agreed with Carillion by up to 20% during the next three years.

The agreements cover construction, rail maintenance and facilities management contracts.

Carillion said it has no group-wide policy requiring discounts. But the Telegraph said suppliers were told that if they fail to accept the new terms they were likely to lose work as it consolidates its supply chain in an attempt to save £140m by 2013.

A spokesman said: "It is a competitive market and if suppliers offer discounts, and some instances double digit proposals, this sets a benchmark for other suppliers."

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