Tesco to swap contractors for store construction

Grant Prior 14 years ago
Share

A raft of new contractors is expected to benefit from Tesco’s plan to spend £1.6bn on new store building and refurbishment this year.

The retail giant announced capital spending plans during its preliminary results presentation today.

Store spending will increase slightly to £1.6bn from £1.5bn last year. But the extra investment is expected to coincide with a reshuffle of Tesco’s construction partners.

The Enquirer understands that Tesco has been holding a series of intense negotiations with current framework contractors and firms looking to become preferred suppliers.

One contracting director said: “Everyone knows that Tesco is a tough negotiator and they are constantly looking to get the best value from their suppliers.”

It is believed that Tesco will announce new construction framework partners shortly while some existing partners could be replaced.

In January it was revealed that Kier had left the retail store framework while the performance of other contractors was being closely scrutinised.

The source said: “Talks are going on at the moment but Tesco likes to do this sort of thing in private so all parties have been sworn to secrecy.”

A Tesco statement said: “Through the experience and expertise of our property teams we have developed over a number of years a good pipeline of new space opportunities.

“As a result we have the opportunity to unwind some of the work-in-progress we have built up and will be stepping up the rate of expansion in 2010/11.

“We will be investing £1.6 billion of capital in the UK economy this year and will create thousands of jobs including for the long-term unemployed through our regeneration partnerships.”

Latest news

Geoffrey Osborne files administration notice

Contractor in talks to save parts of the business
5 hours ago

RG Group signs £121m Newcastle rental homes job

Developer Olympian Homes advances 519 flats plan at Pottery Lane site
2 hours ago

Winners named for £260m Manchester Uni framework

B&K, Henry Bros, Graham, Robertson and Vinci among new line-up
5 hours ago

Shed specialist Benniman rides out market lull

Worcestershire warehouse builder says industrial and logistics work is picking up again
5 hours ago

Another contractor cleared after high profile immigration raid

Adana Construction employees were working legally on site swooped on by Home Office
5 hours ago

McAleer & Rushe wants to meet new London suppliers

Contractor holding Meet the Buyer event in London: Register now
5 hours ago

McAlpine signs £500m Broadgate dual towers deal

Work to start on iconic 36-storey and 21-storey towers
1 day ago

Worker rescued from collapsed four metre deep trench

Fire crews take six hours to save trapped builder near Blackwall Tunnel
1 day ago

Gove puts another major building scheme on hold

Secretary of State starts another planning fight after M&S defeat
2 days ago

Greenwich University tenders £300m framework

Up to five firms will carry out upgrade and newbuild work at three campuses
1 day ago

Work starts on Manchester 26-storey Obsidian tower

Contractor Domis starts Salboy's 10th Manchester scheme in seven years
1 day ago

Race for £1.3bn West Midlands social homes framework

The Community Housing Group reboots tender race for new build housing
1 day ago

Delancey submits £400m King’s Cross lab plans

200,000 sq ft lab/office project will be built above railway and tube tunnels just 4.5m below
2 days ago

Winners revealed for £150m fire safety framework

New deal will help organisations comply with the Building Safety Act
1 day ago

Sellar plans £500m City tower next to Walkie-Talkie

Consultation starts on London 60 Gracechurch Street tower
2 days ago

Severfield ends year on high with record order book

Orders top £500m with strong future pipeline of opportunities ahead
2 days ago

Second senior director exits National Highways

Commercial director Malcolm Dare set to move on to new role
2 days ago

New scheme fuels London lab building boom

Plans in for 160,000 sq ft Whitechapel scheme near Royal London hospital
2 days ago

Contract race starts for next £155m section of A9 dualling

Prior Information Notice published for Tay Crossing to Ballinluig stretch
3 days ago

£55m Sheffield build-to-rent scheme approved

Demolition to start later this year for 158-flat Sheffield Garden project
3 days ago

London back as most expensive place to build in world

Capital leapfrogs Geneva to top costliest construction rankings
3 days ago

Gas supplier Regent to buy TClarke for £90m

£491m turnover listed building services specialist to be sold
3 days ago

Steel contractor Billington launches into bridge market

Steelwork firm hires staff from failed architectural and bridge specialist SH Structures
3 days ago

McGee employees benefit from rise in profits

Pre-tax profit doubles boosting payouts for Employee Ownership Trust
3 days ago

Lendlease veteran is latest new McAlpine director

Paul Sims joins as Operations Director after 40 years at rival contractor
4 days ago

Costain signs site labour supply deal with four firms

Contractor to use only a quartet of providers for temporary labour supply
3 days ago

BAM go-ahead for Leeds 200,000 sq ft office

Latitude Yellow will complete final plot at Doncaster Monk Bridge site
4 days ago

VolkerFitzpatrick wins £30m logistics job

Latest deal to build five distribution units for Prologis UK
4 days ago

Trio win new Scape utilities consultancy framework

Perfect Circle, AtkinsRéalis and Arcadis win places on
3 days ago

Precast firm FP McCann cleared after immigration raid

Home Office takes no action after public raid on construction site
4 days ago

Contractor services