Details of the deal have still to emerge, but it is understood that Mears is paying a nominal fee eight remaining term contracts.
The Mears deal accounts for the majority of the Connaught Partnerships deals left after Morgan Sindall paid £28m for around three quarters of the failed firm’s contracts.
But Bob Holt, chairman of Mears, said that the latest deal did not include work for Norwich City Council where Connaught held a £125m five-year contract, which is in dispute
The two deals with Morgan Sindall and Mears are expected to safeguard up to 3,500 jobs at the troubled social housing division, which employed 4,400 in total.
But the contract transfers came too late for 700 former Connaught staff whose jobs have been axed by administrator KPMG .