Competition was so fierce that all four bidders came in below the £26m building estimate. But Bam is understood to have collared the job with a cut-price bid more than 10% below the estimated price tag.

The project to build the police divisional headquarters at Clough Road in Hull has been in the offing since 2007 and was let via the YORbuild Framework.

Steve Beasant, vice chairman of Humberside Police Authority said: “Due to the current financial climate, it is an ideal time to go out to tender for such a project, as the construction industry are competing for fewer contracts.

“As a result all of the four tenders came in at less than the estimated cost for the construction resulting in the overall cost of the project lowering by almost £3.5m”.

He added: “Clough Road is right in the middle of the city, moving teams to the centre of Hull means we can rationalise spending on buildings and importantly respond to community call outs more efficiently, avoiding city centre traffic and bridge delays”.

The BAM tender also came out on top in terms of quality which included their commitment to local people and the local economy.

Using the YorBuild framework, bids were assessed on potential contractor’s intentions to encourage young people from the local community to have a greater understanding of the construction industry and offer apprenticeships.

John Phillips, construction director for BAM in the North East, said: “We’re pleased to be building in Hull, where we have a strong track record, and for an important client.

“For BAM, construction is more than materials – it is about how we build, not just what we build, We look forward to contributing to the community with this project and making a fast start.’