Industry sources have told the Enquirer that the process started this summer although other contractors have so far declined overtures from the group.

The rapid growth of Galliford Try’s housing business during the last few years fuelled speculation in the city that it may seek to concentrate on housing, which offers strong profit growth.

A city source said that aspects of the construction business had been instrumental in supporting the housing activities, specifically the affordable housing contracting side has improved its urban regeneration offer.

He said: “Also cashflow from construction generally has helped fund the housing division at a time when pure house builders were struggling with gearing levels, however some may question do they need the whole of the construction business rather than the housing related construction activities?

“Perhaps there is scope for maintaining a slimmed down contracting operation, while offering for sale the more infrastructure facing activities while there has been talk in recent months of potential Chinese interest in infrastructure.”

The construction division has benefited from the recovery and buying Miller Construction helped to lift turnover by 55% to £1.3bn in 2015.

While operating profit doubled to nearly £16m, operating margin has stubbornly stayed around 1-1.2%.

Galliford Try’s housing division delivered £134m operating profit from £1.1bn turnover. But investment in land and building has seen average net debt steadily climb from £40m four years ago to nearly £170m this year.

A spokesman for Galliford Try said: “As a policy Galliford Try never comments on rumour or speculation.

“The board continues to pursue its established and published strategy to 2018, which targets disciplined growth across Galliford Try and, having acquired Miller Construction in July 2014, our construction business forms a key part of that strategy.”