Dundee City Council approved the tender yesterday after hearing that the cost of the scheme to replace Braeview and Craigie schools had now hit £100m.
The original budget was £60m and that figure was raised to £86.8m last November when the last estimate was calculated.
The council’s policy and resources committee heard the increase was due to “the response to COVID-19, Brexit and effects of the Russian invasion of Ukraine” which “have led to a significant increase in construction inflation continuing, driving shortages in the supply of materials and labour combined with the rising cost of energy.”
Councillors were told that in response to rising costs, senior officers have reviewed the tender submission in detail with the contractor and this review concluded that the tender meets the best value possible based on the current market conditions.
Children and families convener Councillor Stewart Hunter said: “This is a golden opportunity to transform educational and community facilities and replace two outdated buildings with a campus fit for the years ahead.”