A Balfour Beatty source said: "We worked for quite a few months trying to meet their cost aspirations but there was a void between us. We could not reach agreement."
The company had done preparatory work on the scheme to extend the Arndale shopping centre to include a multistorey car park and retail space, but construction had not started. The project has now gone out for tender.
Building understands Laing Construction is considering the deal, but Laing chief operating officer Andy White refused to comment. It is well known that Laing is intending to increase its London presence.
We were trying to meet cost aspirations but there was a void between us
Source at Balfour Beatty
An industry source said that whoever took over the contract would encounter problems with the price.
The source said: "Balfour Beatty was working on it, but there were ongoing negotiations and there was a feeling from the developer that Balfour wasn't as cheap as it could be."