This month it was revealed that councils are having to pay on average 20% more to cover the delivery of services and construction projects left unmanned by Carillion. Branded a ‘kick in the teeth' by the shadow communities secretary, the Local Government Association said cash strapped local government leaders are now scrambling to avoid the increased costs before they spiral any further.

To do this, many councils will choose to appoint a new contractor, or bring services that were previously provided by Carillion back ‘in house'. Before taking either course of action, the existing contract must be closely examined - there are critical practicalities and legal challenges local authorities must consider.