The Albury firm is the preferred tenderer to be lead contractor for the $10.5 million project.

City staff have recommended Albury Council accept the $8.3 million construction tender from Zauner on Monday.

Zauner, which built the award-winning Albury Library Museum in 2006-07, was among five contenders vying for the job.

An assessment panel made up of senior council officers headed by director James Jenkins assessed Zauner as giving the best deal.

More than $1.6 million of the overall budget has been accounted for on items including $764,000 in design costs, leaving a construction budget of $8.8 million.

Zauner’s price of $8.3 million was under the set budget and about $500,000 cheaper than the next two tenderers, Joss Construction and Contract Control.

Zauner expects the landmark project to take almost 12 months and be completed ahead of the June 2015 deadline.

Joss estimated it could complete the project in eight months.

Zauner has allowed for an alternative lift to the proprietary brand suggested in the project documentation.

To supply the suggested one will add $129,000 to its tendered price.

The company built two recent projects for Wodonga Council — The Cube and the WAVES swim centre — and built the Northpoint Tower which includes the Lavington Library.

City major projects group leader Mauro Dei Agnoli said in his report cost was the “governing parameter” in selecting the tender.

“With the Zauner tender being just over $500,000 lower than the next favourable, this difference provides a buffer to absorb contingencies that will inevitably arise during construction,” he said.

The lift issue would be subject to further investigation and due diligence with Zauner.

Manteena and Hansen Yuncken were the other short-listed tenderers.