Officials have confirmed the deal will not go beyond its minimum five-year period just over two years after the contract was awarded.
The decision is another blow to Morrison following the termination of two repair contracts in London earlier this year
Thurrock Council’s housing lead, Cllr Val Morris-Cook, said: “In August 2010 the council entered a contract with Morrison Facilities Services to carry out repair works to its housing stock and return empty properties to a lettable condition.
“The duration of this contract was initially for five years but capable of being extended to a full 15 year term.
“It must have been considered at the time that significant benefits would be delivered from awarding the work to a single contractor and offering the potential for a long term working relationship.
“The results delivered by the partnership have been disappointing and I have therefore decided that Morrison should be notified now that no extension will be given and this has been done formally in a letter to Morrison’s chief executive.
“It may seem an early stage in the contract to have decided this, but I feel that the partnership, as it is presently constructed, is unlikely to build up sufficient customer confidence to merit an extension.
“We should, therefore, be open with them that their contract will not be extended.
“The contract exit terms are convoluted to say the least.
“There are many lessons to be learned from this exercise, not least that we need to consider local businesses as competent service providers and offer them opportunities to contribute to the local economy.
“Only large companies were considered for this contract and in future the council may wish to re-visit this strategy.
“The council made mistakes its tendering processes and in its management structures so we cannot say that the poor quality of service delivery lies entirely with Morrison.”
A spokesperson for Morrison said: “We remain committed to working closely with Thurrock Council for the remaining three years of our contract with them.
“Our priority will be continuing to work hard to deliver the highest possible level of service to residents.”