Dundee City councillors in the UK are likely to appoint Balfour Beatty as a confirmed contractor for the Dundee Rail Station Concourse project in Scotland, despite its bid being more than £7m over the original budget.

For the project, the company submitted the lowest bid of £28m and received the highest quality score, which includes a commitment to create local employment opportunities.

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The agreement is expected to be signed next week.

"Lack of competition in the marketplace combined with the current risk averse approach to rail related projects were key elements."

Dundee City committee convener Ken Guild said: "We commissioned a report by project consultants Jacobs to find out why the cost was pushed above our original estimates and it notes that there were a number of complex factors that combined to account for the increase.

"Lack of competition in the marketplace combined with the current risk averse approach to rail related projects were key elements, however the council’s new capital plan has identified funding for this vital project to go ahead.

"More than 120 construction jobs per year for the two years of the build, £11.6m of gross added value to the local economy, and knock-on benefits to the local supply chain all add up to make the concourse project a key economic driver while it is being built."

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Designed to create a new landmark within the Central Waterfront development, the new railway station building will occupy the site of the former concourse.

The proposed station building will have a double-height ground floor incorporating a passenger concourse, ticketing facilities, as well as a cafe/restaurant and retail space.

There are three additional floors above this, which will accommodate a new mid-market hotel.

If councillors back the move, work is scheduled to be initiated later this year and take just more than two years to complete.

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