Mace back onboard for London's Shard

The weeklies were dominated with news that after weeks of confusion over who will build the country's tallest Shard of Glass tower, Mace now looks to have held onto the £350M contract after Laing O'Rourke cut loose from a fixed-price deal.

Mace's future on the project to build the 310m-tall landmark had seemed over after developer Teighmore ditched the previous construction management route in favour of a fixed-price contract. Banks had told Teignmore they wanted more price certainty on the deal and were unwilling to bankroll it under CM. Laing was then asked by the developer to look at a fixed-price contract, but it's now got cold feet, setting the scene for a return by Mace.

Building magazine reported a source close to negotiations as saying that Mace was finalising a "350m and upwards" fixed-price deal, the first of this size in the company's history. However, Construction News (CN) said that Mace's proposal for the contract will see it carrying out the £100m substructure and groundworks package under CM, with the remaining £250m above ground work completed under a fixed price.

Speculating on Mace's financial clout and its ability to complete a job this big via fixed price, CN quoted one expert as saying:"the £250 on fixed price is over something like three-and-a-half years. That's less than £80m a year, so Mace will say it's not that big a risk."

There's also uncertainty as to the progress of demolition work. Building magazine quoted project sources as saying it was proceeding, albeit slowly, following a six-month delay, while CN said demolition contractor Keltbray's work had still to begin due to the funding impasse.