SIR ROBERT McAlpine is tipped to win a major scheme in Edinburgh known as the Bridge.
The firm is currently negotiating with the client, local company Kilmartin Property Group, after making it through to the second stage of the tender process.
Balfour Beatty, HBG and Mace had also been in the running for the deal.
With a total value of £40 million, the project will involve building a luxury hotel along the city's famous Royal Mile.
Shops, restaurants and a bank will also be incorporated into the scheme.
Bids were returned two months ago and since then firms have been keeping their fingers crossed for the right result. One bidder said: 'It's a nice scheme, given where it is in Edinburgh. Unfortunately, it's not going to be us.' HBG had been tipped as an early favourite since the firm has worked with the client on several projects before.
One source said: 'Everyone thought HBG was the team to beat because of its relationship with Kilmartin.' Work is due to start in June.