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Library job is back to square one

CONTRACTS - NEWCASTLE UPON TYNE

THREE firms will have to go back to the drawing board after their bids to build a library in Newcastle upon Tyne bust the local council's budget.

Equion, Kajima and Kier submitted their plans in January for a new library and the redevelopment of three community libraries.

The contract had been budgeted at around £27 million but bids came in way over the figure.

The scheme has now been split into two, with the first part comprising the city centre library and one community library costing about £40 million.

The second part will include the other two libraries plus a further three.This part of the deal is worth around £7 million.

The scheme will be carried out under the Private Finance Initiative.