Taywood/Carillion team close in on DLR upgrade

Sources say that a Taylor Woodrow/Carillion pairing is pulling ahead in the race for a vital upgrade on London's Docklands Light Railway (DLR).

At this stage of the game, it looks like the joint venture is set to reach its destination ahead of its sole remaining rival Costain for the £180m package, known as the three-car capacity enhancement works.

The winner of the contest is due to be revealed soon, but one insider said: "With every passing day, I think Costain's hopes of clinching this one are disappearing further into the distance."

The two groups are the only contenders left in the running after two other bidders originally chasing the job pulled out late last year.

Balfour Beatty and Amec had coupled up to pitch for the deal, but turned their backs on the scheme amid claims that too much of the design work had to be carried out up-front without the prospect of compensation if bids hit the buffers.

The contract covers the busiest stretch of track - between Bank and Lewisham - and is regarded as a key element in transport plans for the 2012 London Olympics.

The centrepiece of the scheme is a new station at South Quay and the demolition of the existing one.

Existing stations will also be modified to take three-car trains, about 70 bridges and viaducts will be strengthened, new viaducts built and tracks modified and realigned.

The aim of this is to boost passenger capacity by 50%.