Contractor beats Skanska in two horse race to build City tower

Laing O’Rourke has pipped rivals Skanska to win the contract to build the £290m Cheesegrater tower in London.

The 47-storey tapering tower for joint developers British Land and Oxford Properties is one of the most prestigious construction jobs in the UK.

A source close to the project said: “Laing O’Rourke has been told it has won the contract and Skanska has conceded.”

The shortlist to build the tower was whittled down to Laing O’Rourke and Skanska last month. Mace, Sir Robert McAlpine, Lend Lease and Balfour Beatty were previously in the running for the contract.

The developers aim to complete construction by the second quarter of 2014.

Basement works began in January, managed by Lend Lease.