Bovis up for rival Multiplex’s £4bn Stratford City scheme

Bovis Lend Lease has been shortlisted to programme manage the £4.3bn Stratford City scheme in east London by its Australian rival Multiplex.

Multiplex holds a stake in the development along with Westfield and the Reuben brothers after they jointly bought Chelsfield’s 75% stake. Stanhope owns a 25% stake.

Building understands that the development team has also shortlisted Bechtel and has carried out selection interviews for the contract over the past two weeks.

There has been speculation, however, that Multiplex will sell its stake. The firm has been under scrutiny following construction problems at Wembley stadium, on which Multiplex has announced that it will suffer at least a £45m loss.

A source close to the project said that although Multiplex was part of the Stratford development team, the decision to shortlist Bovis was prompted by the other stakeholders.

He said: “There is a lot of discussion about this site and about who is actually going to build it. Following the Wembley debacle there is now a strong suggestion that it will not be Multiplex.”

He added that given the financial impact the Wembley losses will have on the business, it was be likely that Multiplex would sell its stake.

It is understood the development team met Bovis and Bechtel this week to discuss the scheme. One issue that has arisen is Bovis’ potential involvement with the Olympic village site next to Stratford City. The source said: “Bovis is also on a longlist to programme manage the Olympic village site. It would be difficult for the company to do both projects as it would carry a hell of a lot of risk.”

A Multiplex source said, however, that there was still a strong determination within Multiplex

to carry out the programme management contract and the building works.

He said: “Despite the political wranglings, we are still heavily involved. It’s early, but this is a three-way battle between Multiplex, Bovis and Bechtel.”