Work on a £28 million railway station development in Dundee will begin in the autumn after councillors approved the plans, though the process was far from smooth.

Dundee City Council revealed last week that the cost of the project, to be delivered by Balfour Beatty, has reached more than £7m over the pre-tender estimate while additional assurances were sought by councillors over the firm’s alleged past use of blacklisting.

The Courier reports that Councillor Richard McCready led a challenge to senior councillors to prove they were serious in their stated opposition to the practice.

In his response council leader Ken Guild said Balfour Beatty had already offered assurances to the satisfaction of the council.

Officers, meanwhile, warned that a delay in accepting the firm’s £28m bid risked jeopardising the build as that tender was “close to running out”.

That further angered members of the Labour group, who complained of being “railroaded” into accepting the offer for fear that the project may become even more expensive.

Addressing the council, however, Mr Guild said Balfour Beatty should simply be allowed to get on with providing the train station the city has been asking for.

“Network Rail has a very restricted list of companies that are allowed to build over its tracks and that curtails our choice of company,” he said.

“Balfour Beatty has a track record of building over railways and have an excellent reputation for the quality of their work.

“They were involved in blacklisting but as part of the consideration of the contract the firm was required to satisfy officers that they are no longer involved.”

Liberal Democrat councillor Fraser Macpherson said it was “vital” that visitors coming to Dundee to see the V&A see and experience the new rail station.

Despite the cost increase, councillors heard that funding for the concourse revamp had already been secured because of the project’s importance to the city, its likely community benefits and the radical improvements it will make to the transport infrastructure.

The proposed new station building will occupy the site of the former concourse and it has been carefully designed to create an impressive new landmark within the Central Waterfront development and also an attractive new gateway into the city for rail passengers. It will have a double height ground floor incorporating a passenger concourse, ticketing facilities, as well as a café/restaurant and retail space.

There are three additional floors above this to accommodate a new mid-market hotel.

Work will take just over two years and be ready in time for the opening of the V&A at Dundee.