Bradford Council has a contingency plan to protect regeneration work in the city should troubled social housing firm Connaught pull out of a major refurbishment scheme.

Thousands of jobs are at risk as the company prepares to go into administration. The group’s board has been in the process of appointing KPMG as administrators.

Connaught is currently carrying out repair works to homes in two Bradford streets as part of a housing renewal programme in Laisterdyke. Thirty-five properties in Marsland Place and Napier Road are involved in the two-year scheme which started in April 2009. The contract with Bradford Council is worth £1.8 million a year.

The Exeter-based firm is also working on adapting five properties for disabled use around the Bradford district.

Neil Watson, renewal team manager for the Council’s housing services, said: “At present, Connaught is continuing to work on all of the projects and its intention is to carry on as normal through the administration.

“Should there be any change in that situation we have contingency plans in place to ensure other contractors come in to complete the work.”

Bradford and York-based Yorkshire Housing Ltd announced a £7m deal with Connaught last October to provide investment, maintenance and repair work to more than 12,000 properties across West and North Yorkshire for the next four years – including in Bradford.

In a statement released yesterday, Yorkshire Housing Ltd said: “In order to protect services to customers we have asked another construction partner, Rok Group to take over the delivery of our day-to-day repairs service on a temporary basis.”

Mike Cartwright, policy executive at Bradford Chamber of Commerce, said: “There is a case for Connaught struggling for some time with profit warnings, shares falling and contracts deferred. It’s disappointing and sad what has happened but perhaps not surprising to people in that sector.”