450 CONTRACTORS faced going bust if they had been forced to continue to carry out major social housing works, the Housing Executive has said.
The agency has settled with 10 contractors wanting out of a 2020 deal to repair and refurbish kitchens and bathrooms, fit new windows and rewire homes.
It was part of a £455 million seven-year contract with 13 companies. Two remain on the job while one is in administration.The 10 walked away from the contracts in August, in some cases claiming their survival was threatened if they continued.
Fears the companies may have gone into administration leading to jobs losses as they grappled with escalating costs were the reasons cited by NIHE for agreeing to settle.
The executive said the agreement will lead to delays in works on 3,600 tenants’ homes but added a new tendering process will begin immediately.
Hundreds of its directly employed maintenance staff are on strike over pay, while administrative staff up to at least mid-level are scathing in their criticism over the delivery and management of contracts.
Letters outlining these criticisms have been delivered as part of a whistleblowing complaint, including to Communities Minister Deirdre Hargey.
The NIHE said the loss of the 10 contractors will lead to delays across the north, with only those homes in South Down, North Down and Ards and Lisburn and Castlereagh unaffected.
In a statement, it said “the necessary budgets are available and work schemes are ready for delivery”.
Grainia Long, chief executive of the Housing Executive, said: “As has been widely reported, the construction industry is suffering from severe inflationary pressures caused by rising material and fuel costs as well as labour and skills shortages. Industry trade bodies have asked that contracting authorities be flexible in their approach to fixed price and fixed-term contracts.
“In response, the Housing Executive has sought to strike a balance between delivering for our tenants and preventing job losses and companies going under."
Ms Long said the executive "agreed to mutually terminate 10 contracts which were tendered in 2020 prior to the current inflationary price rises".
“The alternative was to enforce the contractors to continue at the work which would have placed increased pressure on the contractors’ financial position, which could result in the contractors entering administration and putting a significant number of jobs at risk," she added.
“In forthcoming days we will be contacting tenants who are impacted by any delays to the planned schemes to their homes. I know this is extremely disappointing for those tenants who have been waiting for these improvements to begin.
"In some instances, this work has been subject to previous delays, which is especially frustrating."
