Southwark Council and Breyer have “mutually agreed” to terminate a five-year housing maintenance contract worth approximately £80m, which had an optional five-year extension.
Councillor Ian Wingfield, deputy leader and cabinet member for housing, said: “We always put the needs of our residents first, and are fully committed to providing the highest standard of major works.”
“We owe it to residents to constantly review the delivery of works and make changes where necessary.
One element of the repair contract - work on Draper House, a tower block in Elephant and Castle - had previously been halted after a gas leak left a resident in hospital.
Mr Wingfield continued: “Southwark Council and Breyer Group PLC have mutually agreed to conclude their five year partnering agreement. This agreement means that Breyer will no longer be responsible for the completion of works at Draper House.
“Our priority is to resume work at Draper House as swiftly as possible. We know that is what residents want, and we will be speaking to them about our plans to get this important work underway again.”
A cross-party committee of Southwark councilors was set to examine the Draper House issue last night.
Councillor Cathy Bowman wrote on her website before the meeting that “it would be a mistake for us to pretend that the only problem has been the very serious incident with the gas leak.”
“The problems with this contract predate that by months and months and months.”
Southwark previously ended a £9m contract with Morrison’s, for repairs on council homes in the south of the Borough, with Mears taking over.
That contract allowed for termination by either side without reason.