A BID to force a rethink over the contract for highways maintenance in North Yorkshire was thrown out yesterday.

The Liberal-Democrat group on the county council had challenged a decision to extend the contract without putting it out to tender.

Four years ago, Hampshire-based Raynesway Southern Construction was awarded the £27m-a-year contract to until 2008 with the option for a four-year extension.

Last week, the authority's executive voted in private to take up that option and review the contract.

The Lib-Dem group called in the decision, saying it should go out to tender to show taxpayers they were getting value for money.

However, the authority's transport and telecommunications overview and scrutiny committee yesterday rejected the proposal and the contract will now be retendered in 2012.

Executive member for environmental services Peter Sowray said: "A thorough financial and performance review of the contract was carried out by council officers and external consultants.

"There are clear financial and operational benefits in extending the contract.

The county council will benefit by over £2m and it has the ability to reduce the period of the contract of Raynesway."