Morrison loses £10m repairs contract
Paragon Community Housing Group has terminated a £10 million a year maintenance contract with Morrison just two years into the deal.
The contract to provide responsive repairs and domestic gas servicing was supposed to run for at least five years, with the option of being extended for an additional five years, but the 9,000-home landlord brought it to an end after residents reported concerns with the service.
‘Residents are at the heart of our services and we have listened to their concerns about maintenance and taken steps in response,’ said Ian Watts, managing director at Paragon. ‘We hope that they will quickly start to see improvements.’
Willmott Dixon will take on the responsive repairs contract for an interim period, with Robert Heath providing the gas service. The south east-based landlord will appoint new permanent contractors next year.
A spokesperson for Morrison said: ‘Contracts are demobilised for a variety of reasons, and our priority remains to ensure that local jobs remain protected during the transfer to new contractor.
‘We wish Paragon well for the future, but cannot comment on the contract between us which is the subject of proceedings.’
In April, Morrison lost a £9.5 million a year contract with Southwark Council, while Birmingham Council also threatened to end its £3 million a year deal with the contractor.