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Carillion on the hunt for Birmingham Green Deal supply chain partners

Carillion is looking to local companies outside its traditional supply chain to work on its pioneering £600 million Green Deal contract, CN has learned.

Carillion Energy Services strategic liaison executive Phillip Arend told CN that the construction giant would be delivering the scheme through a combination of its own supply chain and local partners.

“We’re very much looking at how we can use the local supply chain within the Birmingham area – we’re not intending to bring in national players, to ship them in and move them out”, he said.

A key concern surrounding the Green Deal has been that smaller firms will be left in the lurch as larger contractors offer full packages of assessment, installation and financing.

But Mr Arend said Carillion, which beat npower to the Birmingham Energy Savers contract to roll out Green Deal improvements to thousands of West Midlands homes and businesses, was “very keen” to engage with local tradesmen.

“It’s going to be an ongoing process”, continued Mr Arend. “We’ll develop our supply chain and ramp it up.”

Though he said it was “still very early days”, Mr Arend hinted at increasing the national supply chain, with “wider opportunities” in the Carillion workstream.

He said it hoped to create at least 360 jobs in Birmingham in the long term as part of a “process of mobilisation”.

Carillion will be conducting work on the Energy Savers scheme through a three-tier system, which will involve SMEs.

Mr Arend said work would initially be focused around residential measures, but that it would be delivering commercial energy efficiency measures as well.

“The thing about Green Deal is it’s still an unknown entity at the moment,” he said. “Nobody quite knows what the demand is going to be.”

Department of Energy and Climate Change director Tracey Vegro, when asked by CN if the DECC was encouraging the opening of supply chains, said “it’s very much about diversity of models”.

She added: “Some local authorities will want a local supply chain.”

Interested parties can contact Carillion on 0191 676 3000 or at enquiry@carillionplc.com

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