Shard contractor in exclusive talks over £120m fixed-price deal for 17-storey companion tower

Mace is being lined up to build London Bridge Place, the 17-storey companion tower to the Shard.

It is understood that Mace, which is already building the £425m Shard, is in exclusive talks with developer Sellar and its Qatari backers over a potential deal, which would avoid the need for the developer to go out to open tender.

The deal would see Mace build the tower for a fixed price, understood to be in the region of £120m-£130m. It is understood that the scheme’s Qatari investors held meetings in London last week to discuss the deal.

Sources close to the situation confirmed that talks were continuing, and said that a deal was likely to be struck. One said: “They haven’t given it to Mace yet but are proceeding with the intention of reaching an agreement.”

Early demolition work began at the end of last year on the project, which is part of the £2bn London Bridge Quarter development.

However, it is understood that Mace will miss out on the Milton Court scheme, now known as the Heron, near London’s Barbican. Sir Robert MacAlpine has been widely tipped to take the Heron Properties scheme after offering the lowest price, and is expected to be confirmed as the contractor within the next fortnight.

Mace and Sir Robert MacAlpine were the final two bidders; however it is understood that Sir Robert MacAlpine has put forward a price of around £135m, about £15m lower than other bidders on the scheme.

A Heron spokesperson said: “No final decision has been made, discussions are ongoing and on their conclusion we will be happy to provide details but we are not in a position to confirm anything until such a time as a final conclusion is reached."