A STIRLING-based construction firm was awarded the contract to build the Great Tapestry of Scotland visitor centre in Galashiels earlier this month.

But the contract is costing almost £300,000 more than originally anticipated.

Ogilvie Construction Ltd won the tendering process, against three other companies, to deliver the construction phase of the £6.7 million project at the top of Channel Street.

Scottish Borders Council initially pencilled in an estimated cost of £4.6 million for the main construction phase.

But the contract which was awarded earlier this month comes in at just short of £4.9 million.

Despite the hike, bosses at Scottish Borders Council are confident that add-ons in the contract will keep them within budget.

A spokesman explained: "“The £4.6 million identified was a pre-tender estimate for the construction works element of the project only and was included in the initial contract notice purely as a guide for the contractors competitively tendering for the project.

“This estimated cost did not include, for example, the novation of the design team costs, which are fixed, or the project allocation of optimism bias and contingency.

“Not all of the project’s risk provisions are included in the initial contract notice as the council needs to achieve the most competitive and economically advantageous tender in an open market procurement processes, while also having the ability to afford market fluctuation for a bespoke construction project in the Scottish Borders.

“These provisions have allowed us to award the contract at £4,989,373, which remains within our affordability cap for the construction element while maintaining the overall project budget of £6.7 million.”

The construction contract is for building the new visitor centre as well as refurbishing the adjacent B-listed Post Office.

The Ogilvie Group is regarded as one of Scotland's most successful family owned businesses, having been operational for 65 years and now employing over 550 people.