Melbourne-based company Excell Gray Bruni has been awarded a $775,561 contract to start the next section of the Beechworth to Yackandandah Rail Trail.
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The fourth section of the seven-stage project, which will be seven kilometres long and two metres wide, will begin construction this year.
A report from Indigo Council capital projects manager Ewen Oldmeadow revealed the tender price was higher than the budget estimate cost of $655,000 and he said "the overall project budget is under increasing pressure".
Cr Larry Goldsworthy told last week's council meeting Excell Gray Bruni has been used by the council before and he was confident councillors could rely on the company.
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"I think this is going to be an exciting section from Wooragee down to Yackandadnah," she said.
"The uptake of it in Yackandandah has been amazing so I think people are very appreciative.
"It might sound like a lot of money, but it's worth every cent."
The project is funded by $5.2 million from the Victorian government and $1 million from the council.
