ENGINEERING services group Amec confirmed last night that it is bidding to be project manager on the £1.7bn Olympic games contract.

The Government is expected to call in a project manager from the private sector to stop costs spiralling out of control.

And Amec, which employs more than 400 people in Darlington, is expected to be a strong candidate to oversee the estimated £1.7bn project, which will include the Olympic park, transport infrastructure and media facilities.

Amec has been moving from traditional construction and engineering into project management roles in recent years, and all its UK bases have project management expertise.

A spokesman last night confirmed that Amec was bidding for the contract to manage the programme.

He said a shortlist of preferred contractors would be announced by the Government soon.

But he said: "It is too early to say exactly what impact winning the contract would have on different parts of the business - it is very early days."

However, he said that if Amec won the contract, the impact would be felt across the group.

Tessa Jowell, the minister in charge of preparations for the Olympics, is planning to hold a summit in October looking at involving industry in the games and letting companies know what is available.

Last week, The Northern Echo revealed that a team of North-East architects was in the running to win a contract to design the velodrome cycling facility for the 2012 Olympic Games.

Newcastle-based Faulkner-Browns has been shortlisted for the contract.

Regional development agency One NorthEast is supporting the region's businesses hoping to win contracts for the Games

One NorthEast estimates contracts worth up to £4bn could be secured.

North-East companies have the skills and expertise needed for much of the work, which includes contracts for power lines in the Olympic Park underground, as well as design services and demolition contractors.

Amec's industrial division, which is based in Darlington, specialises in replacing and installing overhead power lines, gas storage contracts and infrastructure.

Contract wins throughout the Amec group also have an impact on the company's support services operation, based in a separate office in Darlington.

Its support services are in Haughton Road.