Mace's £400m 'Shard of Glass' build estimate shunned

Rival contractors have been sounded out by developers of the Shard of Glass (pictured) in London as Mace struggles to reduce costs on the capital's tallest building.

Mace has been appointed by developer Teighmore to construct the Renzo Piano designed structure on a fixed-price contract.

But both sides are still a long way apart on the price, with the developer demanding a £350m build price while Mace is looking at nearer £400m.

CJ understands that other contractors have been contacted recently by Teighmore, which is led by Irvine Sellar's Sellar Property Group.

One source said: "It's no secret that Sellar wants to keep costs tight in the current climate so other firms have been in for talks to look at alternative options.

"For one reason or another nothing came of it so it looks like Mace will stay on board unless Sellar contacts another set of new companies.

"The alarm bells are starting to sound about the whole job and it wouldn't surprise me if it was delayed on the back of this."

Demolition work on the site is currently being carried out by Keltbray and the planned completion date for the scheme is late 2011.

A Teighmore spokesman said: "Speculation will always surround a high-profile job like this. We will be pushing for a start on site in the autumn."

Doubts over the Shard's cost surfaced after developer Land Securities admitted work on the 'Walke-Talkie' on Fenchurch Street could be delayed because of a downturn in the City of London office market.