Ashfield council in Nottinghamshire has appointed Exeter-based Connaught Property Services, Doncaster-based Frank Haslam Milan and Walsall-based Bullock Construction to provide repairs to 8300 houses.
The council is one of eight to receive government funding for housing improvement under the first round of the "arm's length management organisation" system.
The system involves the establishment of a not-for-profit organisation that is independently responsible for managing housing stock, although ownership of the housing is retained by the council. It is a key plank of the government's policy to raise the standard of the country's public housing stock.
The council's ALMO, called Ashfield Homes, will receive £46m in central funding and £18m through the government's major repairs allowance. However, Ashfield Homes is only guaranteed the central funding if the government awards it a top-level rating for its housing management in September.
The contractors were chosen on a ratio of 70% quality, 30% price
Steve Haywood, Ashfield Homes
Under Treasury guidelines, the ALMO must spend £24m of its allotted funds by the end of March 2004 and £22m by March 2006.
Steve Haywood, director of technical services at Ashfield Homes, said the contractors had been appointed before the funding was guaranteed so that preliminary work could begin. This is so it can ensure it meets the spending deadlines.
Haywood added: "We carried out an in-depth procedure comparing quality and price of the bids. The contractors were chosen on a ratio of 70% quality, 30% price."
Council leader Ken Creed said tenants would be consulted on repairs to their housing. He added: "Tenants can expect housing improvements such as new roofing, windows, kitchens and heating."
There were complaints of unfair treatment earlier in the year from councils using an alternative PFI system to fund housing repair. Council advisers calculated that ALMOs would receive up to 30% more subsidy.
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