Retailer to announce the successful contractors for three-year strategic alliance deals at end of month.
Six contractors are being tipped to become the first prime contractors for retail group J Sainsbury, the UK's biggest commercial client.

Bowmer & Kirkland, Kier, Miller, Schal, Llewellyns and Ballast are the favourites to pick up the deals, which are set to be finalised at the end of the month.

The six have been selected from a longlist of about 20 firms invited to tender for the deals.

The move follows the retailer's decision in March to switch from construction management to strategic alliances with contractors. Sainsbury has commissioned almost £500m worth of construction work in the past year.

Under the new system, the selected contractors will be responsible for picking subcontractors, consultants and architects. Previously, Sainsbury chose from firms on its own framework lists.

The new deals could last up to three years before they are renegotiated, although they will be subject to regular efficiency checks by Sainsbury.

An insider indicated that the regular tests would be similar to the "MOT" tests on framework contractors working for airport client BAA.

He said: "They will be looking at key performance indicators and benchmarking. If people don't perform, they run the risk of falling foul of the agreement."

The alliances will cover three main workstreams: new stores; extensions, refurbishments and small works; and distribution centres.

One source said that the retailer was finalising how the workload would be allocated before officially announcing the agreements.

A Sainsbury spokesperson said it was too early to name the contractors in line for the deals. She said: "There is a fair bit of negotiation to go. The names may change."

When it announced the change of strategy in March, Sainsbury's property division said that it was adopting the route to establish long-term relationships with contractors.

The switch follows the arrival of new Sainsbury chief executive Sir Peter Davis last year.

The property arm is looking to appoint an external QS and audit team to ensure the quality of the work produced by the strategic partners.