The pair will refurbish an estimated 1,300 council homes in the borough. They will install kitchens and bathrooms in all flats in the year 1 programme, as well as new front doors, and electrical and heating works where they are needed.
Tower Hamlets mayor Lutfur Rahman has committed to make additional funds available to bring all council homes in the borough up to the Decent Homes standard by 2015.
The first year of the programme will concentrate on five main areas: Shadwell, Limehouse, Chicksand, St Dunstan’s and St Stephen’s.
The contractors were selected based on price and other criteria, including the quality of their previous work and their experience of working with residents, said the council.
Wates is also the main contractor for the regeneration of the Ocean estate in Stepney.