Well, you bought the O2 contract as a bundled offer, VM and O2 are part of the same group and jointly promoted the offer. I'm not a lawyer, but I'm pretty sure that despite the nominal two contracts, the courts (or more likely a CISAS adjudicator) would reasonably conclude that the two contracts purchased in response to a single offer from two related companies constitute a single contract overall, and the VMO2 group have to fulfil all aspects of the joint offer, or themselves be in breach of the contract.
Wait and see what VM come back with, but if they do deem the property unserviceable, you're still entitled to that £5.25 a day compensation between the first promised install date and the date they say they won't connect you, I'd expect you're entitled to ask for cancellation without penalty of the O2 contract on the basis of it being in effect a single contract (I'd also fully expect O2 to reject that argument), plus refund of any money already taken, and if things get as far as a disputes and separate complaints with both VM and O2, I'd be asking for a further CISAS Tier 4 compensation award for the protracted messing around, inconvenience and distress. On the plus side a further 12 weeks effing around by VM is another £441 of delayed installation compensation.
At the moment I doubt the forum staff can't do much to resolve this, if you get a statement of being unserviceable, then they can intervene and try and get a resolution before you need to formally complain and initiate adjudication with CISAS. They can be effective with VM, I'm not so sure that the chaotic merger with O2 has resulted in any operational contacts that would enable them to get O2 to resolve the matter without a CISAS beating. If you need to go to CISAS for both O2 and VM, that would be two separate but linked complaints, with combined case fees that those companies would have to pay likely be around £800, before any compensation due to you; Logically the staff should know that and agree a prompt and generous settlement with you, in practice that doesn't seem to be how it all works.
Of course there's a number of people in this forum willing to offer advice on next steps to take as these things develop, so don't be messed around, hold the company to account. To try and minimise the stress, treat this as a game - your aim is to wring as much compensation as possible from the uncooperative and Kafkaesque bureacracies of VMO2, most of their staff's job is mostly to wheedle, obfuscate, evade an expensive outcome. This is probably going to rumble on for a good few months yet, you might see the money in time for a late summer holiday.
