Contractor to sign framework-style deal with major concrete supplier and increase capacity of a smaller firm.

Multiplex is set to sign two framework-style deals with concrete firms in an attempt to solve a capacity crisis in the sector.

Building understands that Multiplex hopes to reach long-term agreements with one major concrete supplier and another, smaller firm.

There are now only three subcontractors large enough to provide concrete for major projects. They are: PC Harrington, Byrne Brothers and main contractor Laing O’Rourke’s concrete division.

Martin Tidd, managing director of Multiplex UK, said that he was keen to firm up a relationship with concrete firms. He said: “In particular we are looking at small and medium-sized firms in a bid to grow their capability.”

There has been limited competition in the concrete market since concrete firm O’Rourke bought Laing and become a main contractor four years ago. This led many main contractors to avoid using Laing O’Rourke’s concrete arm, although O’Rourke has enough work of its own to sustain the division.

Multiplex, which uses PC Harrington on major projects at White City and Wembley, said it was keen to sign up more firms because of the sheer scale of work on its books.

These include the White City retail project in west London, the £4bn Stratford City project in east London and the £3bn Cricklewood scheme in north London. This is on top of PFI schemes it has won, including the £340m Peterborough hospital scheme it was awarded last month.

A senior industry source said growing the capacity of a small company would also benefit the sector as the Office of Fair Trading could raise concerns about the paucity of competition in the field.

n Multiplex has received a second extortion threat against workers, according to reports from Australia.

Australian construction union CFMEU in New South Wales said that Multiplex had been warned that a sniper would shoot a crane driver at one of its sites in either Australia or the UK unless it handed over an unspecified amount of money. A similar threat was issued against the company in February, but expired without any action. Multiplex refused to comment.