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Repair and maintenance play a key role in housing management and tenant satisfaction. In the UK, local authority housing departments have traditionally had these services carried out in‐house by local authority building services departments. For more than a decade, such departments have been under pressure to improve their efficiency and effectiveness from public policy initiatives such as compulsory competitive tendering and, more recently, best value. Within some authorities the transfer of housing stock from local authority control to housing associations with non‐profit‐making status is also adding to pressure for quality improvement by raising tenant expectations. Presents a case study of a total quality management initiative implemented within a local authority in Scotland facing precisely these pressures. The success of the quality improvement programme is examined, comparing the perceptions of the tenants and employees with key performance indicators. The pressures to succeed are high since, following an initial five‐year period of grace, the contract for the delivery of building services will only be renewed if the newly‐appointed housing association is satisfied with the efficiency and effectiveness of services delivered. The findings highlight the importance of managing the quality chain across organisational boundaries.