Chris Grayling told the Commons that the high speed rail project would 'continue uninterrupted', despite the firm filing for insolvency earlier this week.
The Transport Secretary has faced criticism after the Government awarded the construction company hefty HS2 contracts despite a profit warning having been issued.
At Transport Questions he said the fact that Carillion was part of a three-company consortium meant that the other two firms would be able to take over its work.
“The apprenticeships are being transferred, the staff are being transferred, the project will continue uninterrupted,” he told MPs.
But Andy McDonald, Labour’s shadow transport secretary, challenged Mr Grayling on his expressions of confidence in July last year about Carillion.
Mr McDonald said: “Does he now accept that he got it spectacularly wrong and that his judgement and his confidence were disastrously misplaced?”
Mr Grayling rejected the claims and rebuffed suggestions that he should stand down over the issue.