Paragon Housing Community group abruptly terminated Morrison’s framework contract last week covering homes in the Richmond area of London.

Former framework partner Willmott Dixon, which lost the job two years ago in an open tender competition, has been drafted in to carry out work on the £10m a year contract on an interim basis.

The contract will be put out to tender again next year to find a replacement firm.

It is the second blow for the contractor owned by Anglian Water Group which also saw the London Borough of Southwark terminate a £9m housing repairs contract earlier this year.

In that case, Mears was appointed to fill the vacancy and handle repairs work.

A spokesperson for Morrison said: “Contracts are demobilised for a variety of reasons, and our priority remains to ensure that local jobs remain protected during the transfer to a new contractor.

“We wish Paragon well for the future, but cannot comment on the contract between us which is the subject of proceedings.”