Crest Nicholson is understood to be seeking more bids for contracting arm Pearce despite receiving offers for the business in late March.
Building has seen a copy of a sale memo, believed to be for Pearce, that was distributed by accountant Grant Thornton to other contractors this week. Grant Thornton is handling Pearce's sale.

A source close to the sale said: "Crest is already talking to bidders but obviously it is still touting it around and looking for a better price. Perhaps it didn't get enough interest the first time so it is having another go."

Crest Nicholson is believed to have received bids from contractor YJL and a management team led by Pearce managing director Don Ross.

The firm has refused to confirm whether it is trying to sell Pearce, but it is well known that Crest Nicholson does not view it as a core business and wants to sell it. YJL is known to be keen to increase its contracting business.

Pearce operates throughout the south of England and has a strong presence in the retail and leisure sectors.

The firm's turnover last year was £225m, up from £210m the previous year. Its pre-tax profit for the year to 31 October 2001 was £1.4m compared with £800,000 for the same period in 2000.