Exclusive: McLaughlin & Harvey has walked away from a deal to build a multi-million-pound distribution centre for Lidl after the two sides couldn’t agree a price for the job.
The contractor had been expected to build the budget supermarket’s 600,000 sq ft South-west distribution hub at Avonmouth near Bristol after it carried out initial design and enabling works on the job.
But it has emerged that McLaughlin & Harvey has decided not to progress to the second stage of the two-stage tender process.
The project – valued by construction intelligence provider Glenigan at £42m – will now go out to tender.
Construction News understands that the contractor’s decision not to continue with the procurement process was due to disagreements with the client over price.
A spokeswoman for Lidl said: “To ensure best value for Lidl, the development of our new regional distribution centre is being procured through a two-stage tender process.
“McLaughlin & Harvey has chosen not to take part in the second stage.”
Lidl has said the tender process was ongoing and it expected works to be completed next year.
The scheme is one of four new regional distribution centres to be opened by Lidl in the South and South-west of England.
McLaughlin & Harvey has constructed a number of supermarkets for Waitrose and Sainsbury’s, as well as retail parks in England and Scotland.
In 2015 it completed the £45m redevelopment of Bristol City’s Ashton Gate stadium.
The contractor declined to comment on the Lidl statement. Neither Lidl nor McLaughlin & Harvey would confirm the value of the project.