Ian Miller, Chief Executive of the Council, said: “There was strong competition for the construction contract, and in the final stage we received several tenders that were below the budget we had allowed for the construction work.

“The outcome of the tender process means that the overall budget for this capital project can be reduced by over £600k, from £10.5m to £9.9m.

“The award of the contract supports the Council’s priority of securing the economic prosperity of the district.

“Thomas Vale Construction’s own headquarters are in Stourport-on-Severn. Its existing network of local suppliers and sub-contractors should mean that the economic effect of this expenditure will be felt strongly in the area, and the company has shown a very strong commitment to using local labour.

“We will work together to secure the maximum benefit for local businesses and residents in terms of jobs, training opportunities and supply contracts.”

Tony Hyde, Group Managing Director of Thomas Vale Group plc, said: “Thomas Vale Construction is absolutely delighted to have won this contract following a rigorous and competitive tendering process. It continues a long relationship with our local council stretching back over a century.”

The company was the main contractor for the present Civic Centre in Stourport-on-Severn in the 1960s.