Some businesses in Rugby are unhappy that Rugby Borough Council will no longer be using local companies to service the council’s housing stock.
One member of a group of local firms called Rugby Contractors Ltd have said that 28 people will lose their jobs and three businesses will cease to trade unless they can find more work.
One of the businesses, who wished to remain anonymous, said: “The way the local businesses have been treated by the housing department is diabolical, other departments are being forced to use the Work Services Unit (DLO) rather than local businesses.
“These contractors have all been working for the Council for between 10 and 28 years there are at least 12 businesses and approximately 43 employees, 28 employees to be laid off initially and three businesses that will cease to trade due to the dependency on RBC.
“This will also effect other businesses and suppliers locally due to the knock on effect of the decision taken by RBC.”
Cllr Leigh Hunt, Rugby Borough Council portfolio holder for sustainable communities, said: “Our contracts were due to be renewed at the end of March, and we advised contractors in October that we would not be completing the tendering process. We have been carrying out end-to-end service reviews across the organsisation, and in the case of housing repairs we found that we were simply not ready to move into a new contracts management system. Therefore the tender was suspended whilst work continues to build a system that meets the needs of our tenants and ensures that contractors will be appointed and paid in a timely manner.
She added: “Any company that finds that it is relying on a single contract for its survival will be vulnerable. Businesses have had good notice that the existing contract was due for re-tender, and of course no-one can be guaranteed success in a tendering process.
“The service will be reviewed again in two years’ time.”