Construction manager Mace has won the £135m contract to build pharmaceuticals group SmithKline Beecham’s west London headquarters.

Mace was appointed last week to build the 79 000 m2 complex under a traditional contract, after the drugs giant abandoned a plan to use private finance initiative-style procurement.

Bovis had been expected to build the project under a groundbreaking £240m build-finance-operate deal, with developer Stanhope and investment bank Schroder. SmithKline will now fund the development itself.

The Stanhope-Schroder-Bovis team was selected as preferred bidder in April ahead of four other consortia. Contractors Amec and Mowlem were among the firms in the unsuccessful teams.

A spokesman for SmithKline said it had considered bids from all the contractors on the shortlist for the original construction contract. He said: “Mace were the construction managers on site and it seemed quite logical to keep them on. It seemed illogical to change ships in mid-stream.” The shell and core of the building is due to be completed by June 2000. SmithKline intends to occupy the building in autumn 2001.

Architect Swanke Hayden Connell has been appointed to design the £60m fit-out of the headquarters complex. The firm beat a shortlist that included Gensler, Pringle Brandon and Marshall Cummings Marsh.