The collapse of Carillion, the UK's second biggest construction company and a major provider of public sector projects, has caused shockwaves across the industry and has led to searching questions about the future of such public/private finance schemes.
The company employs around 20,000 workers but has been struggling under £900 million in debt and a £590 million pension deficit.
In Northern Ireland, around 500 people are employed by Carillion which has three major contracts with the Housing Executive, worth an estimated £35 million a year, for home maintenance and gas installation. The company also carries out work for Power NI.
Clearly, there is a significant concern about the future of these jobs and the impact on the wider economy.
Trade unions had sought assurances from the Housing Executive some months ago when alarm bells sounded about the company's financial position and it is important that all steps are taken to safeguard jobs as a matter of urgency.
In contrast to the devastating blow to individual workers and small contractors who are wondering if they can pay their bills, it emerged that the bosses of Carillion are in line for bumper bonus payments.
In the face of mounting public anger at this news, the Insolvency Service announced that the bonuses would be halted but that will not stop the growing questions over what went wrong at Carillion and why the government continued to hand the company lucrative contracts despite being aware of difficulties.
This fiasco has placed the spotlight on the entire policy of outsourcing government contracts to private companies, raising issues over the transparency and accountability of such schemes and the value for money for the taxpayer.
Private finance contracts have been particularly popular in Northern Ireland, resulting in the construction of major projects including hospitals, schools and roads.
However, figures revealed last year show that 33 government private finance loans will eventually cost the taxpayer £5 billion more than their capital value by 2043.
If nothing else, the Carillion debacle should make government look again at their approach to these arrangements and how they are managed.
