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Bovis, the Australian developer鈥檚 contracting arm, has a construction management role on the scheme in east London. However, a statement this week revealed that the procurement strategy included 鈥減otential tier 1 construction package opportunities鈥� for the village.

Lend Lease and the Olympic Delivery Authority (ODA) 鈥� which is now likely to provide much of the funding for the village 鈥� hope this increase in competition will reduce prices and spread the risk across more firms.

The ODA said: 鈥淟end Lease鈥檚 approach is a sensible step in the current market to help deliver value for money and minimise risk in the project.鈥�

Sources close to the deal said this was a new approach instigated by the ODA, an allegation denied by Lend Lease.

A spokesperson for Lend Lease said Bovis would continue to carry out construction management on the job. She said: 鈥淚t was always the intention to go out and test things with other contractors. The strategy has always been to tailor our approach as time goes on.鈥�

They were always going to use others but not to this degree

Source close to the project

However, a source said: 鈥淚t was always going to use others but not to this degree. The ODA wants to get more competitive quotes than it would have got previously. The recession means a lot of firms are very keen to win work.鈥�

Firms chosen by Lend Lease will have to be approved by the ODA; tenders will be sent out once this process has been completed.

The development consists of 11 residential blocks, a school and a car park.

It is thought that, whatever the outcome of the tender, Bovis will cary out the vertical build on at least half of the blocks.