The case began in the High Court this week following a tendering dispute over a repair and maintenance contract which Mears failed to make the shortlist on.

The Enquirer understands that a core complaint by Mears is that not enough weighting was given to quality compared to price during the tender process.

One industry expert said: “Mears are unhappy about the whole process and have decided to take legal action.

“It’s a massive issue in the social housing repair sector following the collapse of Connaught and Rok for bidding too low for work.

“Clients must know that accepting the cheapest bid is often not the best option in the long run.”

A Mears spokesman described the court action as “procedural” and declined to comment further.