Carillion renegotiates contracts

Outsourcer Carillion has secured a 20 per cent saving with several suppliers it holds existing contracts with, as part of efforts to save £140m by 2013. Several arrangements have been made with Carillion where suppliers have agreed to hand back up to 20 per cent of the value of the work they had already agreed to. The support services group is attempting to cut its supplier base from 25,000 companies to 5,000 in a system of electronic auctions where firms bid against each other for contracts.