Lend Lease has opened a tendering process for the £900m Olympic village that could result in the main rivals to subsidiary Bovis Lend Lease capturing a large amount of the work

Bovis, the Australian developer’s contracting arm, has a construction management role on the scheme in east London. However, a statement this week revealed that the procurement strategy included “potential tier 1 construction package opportunities” for the village.

Lend Lease and the Olympic Delivery Authority (ODA) – which is now likely to provide much of the funding for the village – hope this increase in competition will reduce prices and spread the risk across more firms.

The ODA said: “Lend Lease’s approach is a sensible step in the current market to help deliver value for money and minimise risk in the project.”

Sources close to the deal said this was a new approach instigated by the ODA, an allegation denied by Lend Lease.

A spokesperson for Lend Lease said Bovis would continue to carry out construction management on the job. She said: “It was always the intention to go out and test things with other contractors. The strategy has always been to tailor our approach as time goes on.”

They were always going to use others but not to this degree

Source close to the project

However, a source said: “It was always going to use others but not to this degree. The ODA wants to get more competitive quotes than it would have got previously. The recession means a lot of firms are very keen to win work.”

Firms chosen by Lend Lease will have to be approved by the ODA; tenders will be sent out once this process has been completed.

The development consists of 11 residential blocks, a school and a car park.

It is thought that, whatever the outcome of the tender, Bovis will cary out the vertical build on at least half of the blocks.