The contract with Morrison Facilities Services (FS) has been dogged by problems since it began in April last year, with tenants complaining persistently about the length of time it was taking for essential repairs to be carried out.
Two months ago matters came to a head when Leeds City Council gave Morrison FS until June to improve their service to tenants of over 37,000 properties in the city managed by Aire Valley homes and West North West homes on behalf of Leeds City Council.
Two months later it appears that not enough has been done by Morrison.
“The level of poor performance being delivered by Morrison has been escalated to the national Chief Executive of the company and penalties, within the terms of the contract, are being invoked,” a report from Aire Valley Homes chief executive Simon Costigan says.
“While vast improvements have been made to both contractor performance and telephony response times, there is further work required to reach the expected levels of performance and customer satisfaction,” the report says.
With the repairs and maintenance contract plus other construction work, Morrison FS earned £15.5m from Leeds City Council in the first four months of 2012.