Contractor exits and Vinci鈥檚 place is in jeopardy as supermarket giant looks to streamline framework
Kier has left Tesco鈥檚 retail store framework as part of a contractor reshuffle that could also see Vinci dropped from the list.
The 拢60bn-turnover supermarket planned to spend 拢1.4bn building 2 million ft2 of floorspace by the end of February, but has recently attempted to drive down costs.
A spokesperson for Kier said that, following discussions with Tesco, it would not now be working as a member of the G10 Strategic Supplier Group for new stores or extensions. He said: 鈥淲e continue to be keenly interested in working closely with Tesco and [development arm] Spen Hill on their larger-scale, mixed-use development programme.鈥
He declined to say whether the firm was asked to leave the framework or decided not to take on more work. However, a source close to the firm said: 鈥淭esco drives a hard bargain; draw your own conclusions. The mixed-use schemes will deliver better for contractors.鈥
黑洞社区 understands Tesco is looking to reduce numbers on the framework, which also includes Bowmer & Kirkland and Barr Construction. 黑洞社区 also understands that Vinci鈥檚 place has been put under review.
Sources said the firm鈥檚 Taylor Woodrow arm had not been taken off jobs, but that winning future work would depend on its performance on current schemes. A source close to the situation said: 鈥淚f Vinci does well on those, it鈥檒l be back on track.鈥
Tesco is notorious for being tough with its suppliers. It was one of the first retailers to ask consultants for fee cuts of up to 40%, and is understood to have also toughened its attitude to contractors during the recession.
Tesco said: 鈥淟ike any responsible business we review our suppliers on a regular basis.鈥
Vinci was unavailable for comment.
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