Cost pressure mounts on suppliers

Published:  15 April, 2011

WYRE FOREST: Wyre Forest District Council has awarded the £6.9m contract for its new Worcestershire HQ to Thomas Vale Construction after fiercely competitive bidding saw firms tender nearly 10% below the original budget.

Ian Miller, chief executive of the council, said: "There was strong competition for the construction contract, and in the final stage we received several tenders that were below the budget we had allowed for the construction work.

"The outcome of the tender process means that the overall budget for this capital project can be reduced by over £600K, from £10.5m to £9.9m.

Nationwide suppliers are increasingly under pressure to reduce costs as contractors cut cost and try to maintain margins.

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