Interserve is understood to have been knocked out of the race for the £180 million Stockton Building Schools for the Future contract.
It is believed that Bam Construct and Shepherd are the two remaining bidders for the scheme to rebuild or refurbish the Teesside borough’s secondary schools.
It is understood that they were the only three firms to submit pre-qualification questionnaires for the Teesside project, although Morgan Sindall is thought to have considered the job.
A preferred bidder is due to be picked before the end of this year. Work is expected to start on site on the first two schools – Bishopsgarth School and Ian Ramsey Church of England School – in spring 2011.
The winner will build two academies and carry out extensive refurbishments of seven community schools, two special schools and a pupil referral unit over the next 10 to 15 years.
Bam refused to comment.