Bigger tram battles are yet to come warns contractor

Published on Tuesday 24 March 2009 08:37

THE contractor at the centre of a row which derailed tram work on Princes Street for a month today said it had not been a major dispute and suggested there were bigger battles looming.

Bilfinger Berger repeated its claim that there were around 100 other "issues" still outstanding and said it was inevitable that they would push up the cost of the project.

The deadlock between the construction giant and tram firm TIE over Princes Street was finally broken during last-ditch talks on Friday night.

Work is now expected to resume tomorrow, with the laying of track scheduled to start in the next few weeks.

Both sides have refused to discuss how Friday's deal was reached but Bilfinger has now heaped more misery on embattled tram bosses by signalling that further disputes lie ahead.

It is understood the company is concerned about the state of utility diversion works, which are thought to be months behind schedule on parts of the route.

A spokesman for Bilfinger welcomed last week's breakthrough but described it as only "one step in the right direction".

He said: "It's an agreement, but there are many open issues still to be resolved. This is one step in the right direction, but it remains to be seen if we can find solutions to the other issues.

"There are over 100 issues which are all around the project. They are major and minor things. Princes Street is not one of the major issues from the construction point of view."

Asked if the other outstanding disputes would push up costs, he said: "I think that point is clear because we've had delays. Of course it will come to more money – that's typical in a large project."

Work to begin the laying of tram tracks has repeatedly been held up by delays in moving pipes and cables belonging to utility companies underneath the city streets.

Earlier this month city transport convener Phil Wheeler admitted that tracks would now not be laid on Leith Walk until the early autumn, despite originally being promised for January.

One insider said: "If you have a look around town you'll see there are a lot of open holes. That's utility diversion work that should have been finished a long time ago. Sometimes they're weeks behind schedule and sometimes it's months.

"In many cases the scope of the works have been changed as well. It's like building a house and you tell the builder which door you want. If you then change your mind during the job and ask for a more expensive door then it's inevitable that you will have to pay more."

A council spokeswoman said: "We are not aware of any further issues that would affect the project regarding Bilfinger at this time."