He is rumoured to be joining Wates, which has been strengthening its management team as it seeks to achieve £2bn revenue by 2018.
Chandler, 53, masterminded Skanska UK’s rise to become one of the big three London building contractors securing major projects in the Capital, including Battersea Power Station, the Scalpel and Goldman Sachs new headquarters.
A Skanska UK spokeswoman said: “Paul Chandler will leave Skanska at the end of 2016 after 34 years with the company to take up another role within the industry.
“He steps down from the executive management team with immediate effect.”
Following commercial roles on a number of high-profile projects in London he became managing director of Skanska’s commercial building operations in London.
Chandlerl was promoted to the executive management team in 2010 and held executive responsibility for all of Skanska’s building operations in the UK.