A tender that was just $89,000 over the $1-million plus budget has been accepted by Orangeville council for construction work on Margaret and Alexander streets.

The $1,110,144.37 tender from Oakville-based F.C.M. Construction Limited was one of six received for the project.

Reconstruction will occur on Margaret Street from Church Street to Hannah Street. The work includes replacing sanitary and storm sewers and rebuilding the road.

On Alexander Street the entire road will be reconstructed, including curbs, drainage improvements, installing storm sewer and replacing the watermain.

A report by Gary Kocialek, managing director of operations and transportation, advised council that the number of bids received indicate the bidding was competitive.

"The increased number of construction contracts being called throughout the province, combined with increased fuel prices, could be leading to a longterm increase in construction pricing, so re-tendering will not likely result in lower prices," the report said.

Although this project was slightly over budget, others such as the Westdale Improvement Area tender came in about $400,000 under the estimated cost.

Work is scheduled to start later this year.