Main contractor on landmark project offers guaranteed maximum price in region of £435m

The 310m-tall Shard of Glass in London Bridge is likely to blow its original £350m budget by about £85m, it is understood.

Mace, the main contractor on the project, has submitted a revised price to Teighmore, the development consortium, and is awaiting a decision from the project’s backers.

The sum put forward was not known as Building went to press on Wednesday, but sources close to the project said it was in the region of £435m.

Mace submitted a price earlier this year that was reportedly about £450m. It has since tried to lower that figure, principally by value engineering the M&E package.

The project’s backers – four Qatari banks which, together with developer Sellar Property, make up Teighmore – are expected to give a decision on the price imminently.

One project source said: “The impression we’re getting is that there’s no way it will not go ahead, but they’re just waiting for a green light on the price.”

The scheme is part of the £2bn London Bridge Quarter scheme, being project managed by Bernard Ainsworth. Cost consultant Turner & Townsend was drafted on to the project earlier this year with a remit to drive down costs.

Several of the subcontract packages on the scheme have already been let: Stent will do the piling, Cleveland Bridge the steelwork, Scheldebouw the cladding and Kone the lifts. Doyle Group is understood to be on the verge of being appointed to the project’s concrete package.

Mace agreed to carry out the project under a fixed price contract last year, after originally bidding for it as a construction management job.