Client the National Exhibition Centre named Galliford as preferred bidder last September following a formal tender race.
But both sides have been unable to agree a final price and have parted company.
Galliford Try confirmed the original price as £18m.
The NEC said: “This contract was originally let in 2012.
“However due to the NEC and winning bidder being unable to reach a commercially suitable outcome we have ended the contract.
“The NEC has since worked hard on the design to ensure that the scheme is affordable for the market and not relying just on market forces to bring the project on budget.
“The constraints of planning approvals and main sponsor terms for the Arena means the selection of new contractor is required without delay.”
A Galliford Try spokesman said: “Unfortunately, despite intensive negotiations by both sides, we were unable to reach agreement on commercial terms for the National Indoor Arena refurbishment project.
“We wish the NEC well in their future endeavours to get the project on site and look forward to continuing to work with them on the major upgrade in wifi provision on the NEC site.”
The NEC has published a new OJEU notice for the deal and is looking to reduce the prequalification process to allow a speedy start on site.
Other bidders in the original tender race are believed to have included BAM, Wates, Sir Robert McAlpine, Skanska and Carillion.
Up to five firms will be shortlisted and firms must express their interest by February 4 with The National Exhibition Centre Ltd Bickenhill Lane Purchasing Department Mark Allwood B40 1NT Birmingham UNITED KINGDOM +44 1217672473 firstname.lastname@example.org +44 1217672865