The body formed by eight London councils served some 300,000 houses and claimed to represent a massive forward spending programme over the next four years.
Apollo, Bramall Construction, Breyer Group, Kier, Mears and Vinci were among a long list of contractors on Cyntra’s qualified suppliers list.
The firms completed a lengthy vetting process last year to earn a place on a new national building framework but now are unlikely to see any of the promised £800m work.
A long list of subcontractors on Cyntra’s specialist London framework will also be let down on the promise of sharing £200m of planned repair and maintenance work.
A source told the Enquirer.com: “The prequalification procedure has probably cost each firm £50,000. Everybody must be spitting blood that nothing will come of it.”
Cyntra was formed by Barnet, Ealing, Hammersmith and Fulham, Kensington and Chelsea, Hillingdon and Hounslow councils seven years ago.