Council rules out extension to Morrison contract
Repairs contractor Morrison will not have a £22 million contract extended by a council following concerns about poor service.
Thurrock Council has announced it will not be extending its contract with Morrison beyond a minimum five-year term.
The Essex council signed a five-year contract with Morrison in August 2010, with the option to renew for a further 10 years. The council has now confirmed it will not take up the option of extending the contract.
Val Morris-Cook, housing lead at Thurrock Council, said: ‘It must have been considered at the time that significant benefits would be delivered from awarding the work to a single contractor and offering the potential for a long-term working relationship.
‘The results delivered by the partnership have been disappointing and I have therefore decided that Morrison should be notified now that no extension will be given and this has been done formally in a letter to Morrison’s chief executive.’
Ms Morris-Cook said the council only considered large companies for the contract and said it may reconsider this strategy in future. She said: ‘The council made mistakes in its tendering processes and in its management structures so we cannot say that the poor quality of service delivery lies entirely with Morrison.’
A spokesperson for Morrison said: ‘Obviously it is a shame that Thurrock Council does not currently intend to exercise their option to extend the contract beyond 2015/16. However, our priority for the remaining three years of our contract is to continue working together with Thurrock Council to deliver the very best service we can to the residents of Thurrock.’
Last month Paragon Community Housing Group terminated a £10 million a year contract with Morrison three years early due to concerns about service. In April Morrison lost a £9.5 million contract with Southwark Council.