Two potential bidders said they had talked to a number of contractors and expected to tie up agreements soon. One bidder said: "We're speaking to a number of contractors that are considering bidding."
Contractors Amec and Balfour Beatty are known to be in negotiations over forming an alliance to pitch for the contract, as are Bovis Lend Lease and Amey. Tilbury Douglas is also believed to be showing interest.
Most contractors are expected to team up with others because of the contract's size and its financial implications.
The scheme will involve the construction of flats at army bases in Aldershot, Hampshire, and Tidworth, Wiltshire. It will include facilities management services and the upkeep of the two estates.
We’re speaking to a number of contractors that are considering bidding
Bidder for MoD contract
Despite the flurry of activity from potential bidders, an invite for expressions of interest has yet to be placed in the European Union's Official Journal. Several contractors are waiting to see the full details of the contract before striking a possible joint venture partnership.
An army spokesperson said the scheme had not yet received ministerial approval but was expected to get the thumbs up.
She said: "A lot of work has already been done on the project but it is still in its infancy. We are now carrying out an environmental appraisal."
The spokesperson added that a study by Project Allenby, the team assessing the viability of the project, came to the conclusion that a public-private partnership deal or the PFI was likely to be the most appropriate route.
