Morrison has been displaced by Mears on Southwark council’s £9 million housing repairs deal, but will bid again for the work when it is retendered next year, CN has been told.
In April the council gave Morrison’s six months’ notice to end the contract, which covers the south of the borough.
Cabinet member for housing Ian Wingfield said then that he felt the need to “to move repairs performance on to the next level”, though Morrison denied its performance had been at fault.
The contract, worth some £9m, allowed for termination without reason by either side.
Mears will work alongside Morrison until October, and then take over solely until October 2013, during which time Southwark will procure a permanent contractor for the work. A Morrison spokeswoman said the company intended to bid for the work again then.
Cllr Wingfield said; “Although the repairs service is improving, it still has some way to go to achieve the quality of service that we, and residents, can be proud of.
“We are looking to Mears to work with us to raise standards and improve customer service in the short-term while we put in place arrangements for the long-term future.”
Morrison, which is unrelated to Morrison Construction, declined to add further comment.