Balfour Beatty and Laing are on the four-strong shortlist for a £70m Defence Estates contract at Catterick Garrison in North Yorkshire.
Amec and Skanska were the other two firms shortlisted for the capital works prime contract. The four were selected from a longlist of 11.

The contract will provide new living and working accommodation, as well as mess facilities and infrastructure, for the Fifth Battalion, Royal Electrical and Mechanical Engineers and the Third Close Support Medical Regiment. It will also provide garaging for the heavy tracked vehicles and equipment of the 25th Armoured Engineer Squadron.

The contract is expected to be awarded late next year, with occupation complete by the end of 2006.

Consultant Mouchel has already been awarded the principal support provider contract on the scheme, which has faced criticism from contractors for costing them too much in bid costs and taking too long to put into action.