Kier & Turner Facilities Management, Carillion & Enterprise Managed Services and Babcock have made it onto the shortlist for the £1.5bn national housing prime contract for military homes.

The Defence Infrastructure Organisation will now have detailed talks with the trio ahead of a winner being chosen late next year with work due to start in 2013.

The five-year contract involves the provision of repairs and maintenance to more than 49,000 UK military homes alongside housing construction projects with an individual value of up to £3.93m.

The trio have fought off competition from a host of big name rivals with 53 contractors originally throwing their hats in the ring.

DIO contract project manager Colonel Bill Morris said:  “This opportunity has attracted a huge span of businesses of differing sizes and specialisations, and I am delighted that we now have three experienced organisations selected to proceed to competitive dialogue for this prime contract.

“These contractors now need to build a healthy and competitive supply chain involving a range of enterprises to deliver the housing service to military families.”