The two remaining bidders for the Scottish Water Solutions deal are QSD (Galliford Try/Black & Veatch/United Utilities/MWH) and Thistle (Laing O'Rourke/ Jacobs/Veolia).
Head of capital programme procurement Lorna McGregor said: "Scottish Water is continuing the bid process and looks forward to working with the two other bid consortia, QSD and Thistle, with a view to concluding a contract once the outcome of the Water Industry Commission for Scotland’s regulatory settlement is clear."
The winning team will manage about £200 million worth of projects each year between 2010 and 2014, with Scottish Water’s own in-house capital delivery team delivering a similar amount of work.
While the winners will be responsible for management of the works, much of the contracting will be carried out by separate capital delivery partners.
Carillion are understood to be pursuing significant packages of future work under the capital programme.