Fears of 16-month delay as tram firm says it warned of hold-ups

Published on Monday 23 February 2009 22:51

EDINBURGH'S £512 million tram scheme was facing further problems last night after it emerged completion of the project could be pushed back until November 2012 – 16 months later than expected.

The German construction firm at the centre of the row told The Scotsman it had repeatedly warned officials since last year that delays to earlier parts of the project would set back its schedule.

Sources close to the project claim that Bilfinger Berger, the firm heading up the consortium building the tram line infrastructure, has demanded an extra 70 weeks to finish its contract.

The company said it had warned Tie, the city council tram firm, "many times" of major delays to a separate contract to move underground pipes and cables. This utilities diversion work, being carried out by a separate company, is required before construction can start.

Bilfinger Berger has been under fire from politicians, business leaders and retailers over claims it is looking for 80 million more, on top of the consortium's 240 million fixed contract agreed last May.

However, the firm denied the 80 million figure or that it had asked for an extra 70 weeks for the contract.

A spokesman said: "For months and months, we've been urging the client to speed things up because we saw the delay coming. We have to work strictly to the agreed conditions in the contract. Conditions are not as they are in the contract.

"Preparation (utility diversion] work was not finished. Many times we told them there was a delay. Tie was aware we would not start until all the contractual agreements had been reached."

A spokesman for Tie said: "We are currently engaged in ongoing discussions over the terms of the contract signed by the consortium."

The new revelations raised the stakes in the row triggered on Friday when Tie and the council announced the eleventh-hour call-off of work on Princes Street because of "unacceptable" demands for extra money from the consortium.

Graham Birse, deputy chief executive of Edinburgh Chamber of Commerce, said the council had taken the "right stance" over the contract row, but said a quick decision was needed over whether to keep the Princes Street measures in place.

There was relief yesterday that the introduction of a host of diversions to accommodate the closure of Princes Street from Saturday had gone smoothly.

However, the capital's main business organisation gave the local authority a ten-day ultimatum to resolve the wrangle.

Nationalist MSPs have demanded the roadworks, which involve traffic being diverted on to George Street and Queen Street, be lifted from today to prevent further disruption to retailers. But the council is insisting arrangements remain in place until the middle of next month.

More than 4,000 people were yesterday said to have visited a mock-up tram which has arrived on Princes Street.

The council also released figures which it said showed "footfall" figures for key parts of the city centre had increased over the weekend compared to the average over the last four weeks.