NQ Water has short-listed three leading, national construction contractors to work on the pre-construction phase of the multi-million dollar Ross River Dam upgrade.

Abigroup Contractors, Thiess and a John Holland/MacMahon Joint Venture will be involved in a two-stage, construction-tendering process.

The companies will first work with the design and engineering consortium GHD/MWH, to ensure ease of construction, encourage innovation and cost efficiencies. The companies will then be invited to tender for the construction contract.

This approach encourages the best design outcomes says NQ Water Chairman Ian Hamilton who notes; the stakes are high.

"This project is expected to cost between $60m and $90m and will be keenly contested by these three contractors," says Mr Hamilton.

"The designers will benefit from the input and skills of three highly skilled construction teams.

"The process will also promote efficiency as the winning construction tenderer will also be intimately familiar with the design."

The design phase is expected to be complete in six months when construction begins.

Mr Hamilton said NQ Water is conscious that local suppliers will benefit during the construction phase.

He said local preference would be a significant factor when calling for tenders for the construction contract from the three, pre-qualified construction companies.