Scottish contractor Barr is on the verge of winning the first construction contract for Glasgow’s 2014 Commonwealth Games.

Barr is understood to have edged ahead of Balfour Beatty, HBG and Sir Robert McAlpine to take the £16m contract to redevelop Scotstoun Stadium.

A source said: “It was most unusual to have four tenders for a project like that. There’s so much interest in getting work for the Games, it seems like everyone wants a piece.”

Although the tendering process for the renovation began before Glasgow won the bid, Scotstoun Stadium was always intended to be a central venue for the 2014 Games.

It will be upgraded to act as the main training venue leading up to the event and will host the squash and table tennis competitions. The main building and the existing stadium will be extended and modernised to create room for 5,000 spectators.

The Scotstoun contract is the first of an estimated £500m spend on the Games. Two new venues, the £70m National Indoor Sports Arena and the £112m National Entertainments Arena will be put out to tender next year. A £245m Commonwealth village is also being planned.