Kier has replaced Morrison on affordable housing company Circle’s central responsive repairs contract, worth up to £350 million.
Morrison was originally selected as preferred bidder for the project, but a Circle spokesman said the company “can no longer deliver the service proposed to Circle through the bidding process”.
Circle and Morrison have chosen to exit the contract negotiations as a result.
Circle executive director of operations Andy Doylend said: “Our robust procurement process means we have ranked bidders who are able to offer the quality service we want for our customers at the best value for money.
“As a result, we will now be proceeding with the second highest bidder, Kier, who have also promised a high level of service for our customers.”
The contract is worth between £240m and £350m, with a margin for growth to allow potential new residents to benefit.
A spokesman for Kier said: “We are delighted to have been selected by Circle to deliver the responsive repairs service in the central region and are committed to providing both a high-quality and value-for-money service.
“We are dedicated to enhancing the life chances of Circle’s customers and look forward to working together in partnership over the next 10 years.”
Morrison has been contacted for comment.