BAM Construction has been confirmed as the preferred bidder for the V&A Museum in Dundee.

On Monday evening, Dundee City Council's Policy and Resources Committee agreed to award the preferred status to the building firm – despite fierce opposition from unions and opposition Councillors.

It has been alleged that BAM Construction was one of the large building firms to take part in blacklisting. A spokesperson for the company is quoted as saying the company did exercise "limited use" of the list from The Consulting Association (TCA) in areas of the UK, but "categorically" denied that it used the same process in Scotland.

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In 2009, the The Consulting Association was found in possession of a blacklist of more than 3,000 workers, mostly within the construction sector, who had previously been involved in union activities or had raised health and safety concerns. As a result of their name appearing on the file, the workers claim they have been denied jobs and therefore a loss of earnings.

The spokesperson added: "The company has accounted for this, apologised, put appropriate training and procedures and training in place to prevent any such occurrence in the future, and has given a public commitment to compensate fairly anyone who can show they have suffered any detriment because of BAM's historical involvement with TCA."

The decision to appoint the firm to the project has been criticised by UCATT and Dundee's Trades Union Congress, as well as Richard McCready, Labour Party Councillor for the west end of the city.

The V&A Museum will be the centrepiece of a £1bn redevelopment along Dundee's waterfront. Detailed talks between Dundee Council and BAM Construction will now be held to finalise construction costs for the project. Initial costs were said to be around £45m.

(JP/IT)