Four people have been made redundant from Transfield Services after the South Wairarapa District Council switched contractors.
The council put the contracts for three waters maintenance - water supply, wastewater and stormwater - and property, parks and recreation maintenance up for tender in March, confirming City Care as the successfultenderer in August.
City Care started the two contracts - worth $8.3 million together - on October 1.
Transfield Services' South Wairarapa contract manager Mike Williams said the company was disappointed to have lost the council contract, but would still be fulfilling other contracts in South Wairarapa.
He said new contractors City Care took on seven staff previously employed by Transfield Services, four people had been made redundant, and five staff had been retained at Transfield to fulfil other contracts.
Mr Williams said that, while disappointed, for the company it was business as usual.
"We've had [the contract] for 16 years, but that's the way the tender box flows sometimes, you don't have any control over what others put in, whether it's cheaper or dearer," he said.
City Care, which works with 15 other councils around the country, including Masterton and Wellington, was unavailable for comment.
South Wairarapa District Council infrastructure and services manager Mark Allingham said the council tried not to get too involved in staffing decisions with contractors but it was important to keep some continuity.
"Whenever you start a new contract you need to keep some of the old knowledge but you want to bring in a bit of new blood and support amalgamation with the new."
Mr Allingham said the change to City Care would provide an increased level of service, and many of the existing sub-contractors, such as Oldfields, would still carry out some of the work.
The move to City Care would bring a leap in technology, with the introduction of an online platform which council staff and the public could use to log work requests which go directly to contractors.
"Residents can be kept in the loop as well. If you contact council with a repair request and leave your mobile number or email address, the progress updates will be sent to you too."
