Housing Executive releases 10 firms from contracts amid soaring costs

The Housing Executive are allowing 10 firms to walk away from maintenance contracts as inflation increases costs.

It is no longer viable for the firms to undertake the work at the originally agreed price.

The contracts were awarded in November 2020 but the price of building materials has soared since then.

The Housing Executive's chief executive warned that had they taken legal action against the contractors it could have forced them into administration.

Grainia Long said the work would now be re-tendered but that would mean delays for some tenants who had been expecting things like new windows.

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"In forthcoming days we will be contacting tenants who are impacted by any delays to the planned schemes to their homes," she said.

The Housing Executive, which is Northern Ireland's public housing authority, owns about 85,000 homes.

On Tuesday, it was reported that there are questions over delays to repairs in Housing Executive properties in south and east Belfast.

One man told BBC News NI that his house had problems with black mould and windows that don't open, but had faced delays in getting those issues fixed.

'Especially frustrating'

"I know this is extremely disappointing for those tenants who have been waiting for these improvements to begin," Ms Long added.

"In some instances, this work has been subject to previous delays, which is especially frustrating.

"I would reassure everybody that work will be going ahead once we have new contractors in place."

Grainia Long said new contracts will be put in place

It is understood that contractors began approaching the Housing Executive during the summer to warn that they would struggle to deliver the contracts on the original terms.

Guidance issued by the Department of Finance in response to rising inflation allowed the Housing Executive to provide uplifts to the original price.

That was possible where the contracts and procurement law permitted it and where compelling evidence is provided of increased costs.

That flexibility was enough to allow two contractors to continue with their contracts but not ten others.

Mrs Long said that in some of those cases, wider procurement law prevented the Housing Executive from applying the increased uplifts which contractors believe to be necessary.