The companies work as the MODern Housing Solutions alongside Enterprise on the MoD's Housing Prime Contract.
 
The report by the Defence Select Committee described the running of the contract to upgrade and maintain Service Families' Accommodation was “unacceptably poor”.
 
The committee said: “The implementation of this contract has faced widespread difficulties and the level of service being delivered is unacceptably poor; the MoD had to invest an extra £20m to overcome the initial problems. We are not yet satisfied that the MoD has taken on board the extent of the problems and the degree to which Service families now experience sub-standard maintenance. It is vital that Service personnel know whom to turn to when problems occur and where responsibility lies, so that such problems can be resolved swiftly and satisfactorily.”
 
The committee also called for more investment in Defence construction.
 
The report concluded: “At a time when the defence budget is stretched, it is tempting to take from the estates budget. The MoD must resist this temptation. A failure to invest in maintaining property is a false economy, leading to greater expenditure in the longer-term. It is important that the outcome of the Spending Review should result in a significant increase in investment in the defence estate.”