All contractors could go if Bilfinger kicked off trams

Published on Tuesday 15 June 2010 09:44

RIPPING up the contract with the firm at the centre of Edinburgh's tram dispute could result in all the project's contractors being booted off the job, it has emerged.

City transport convener Councillor Gordon Mackenzie earlier this month began moves to cancel the contract with Bilfinger Berger unless there is a breakthrough in an ongoing dispute.

According to senior sources, any move to sack the German firm could mean having to re-tender for work due to be carried out by its consortium partners, Siemens and CAF. That would add to looming delays, with insiders admitting a "sense of panic" has set in. around the project.

The News understands key negotiations between all parties in the dispute are to begin tomorrow in a desperate bid to thrash out a deal.

An update on the tram scheme is expected to be presented to councillors at a meeting later this month.

One source said: "Panic is setting in that the project is going really badly now. If Bilfinger Berger decided to go, there would be a question of compensation. But the only other way to get rid of them is to get rid of all three (Bilfinger, Siemens, CAF]."

John Carson, a former head of maintenance at Network Rail, said tram firm TIE should focus on resolving its differences with the German company. He said: "Sacking them would mean they would have to open a new contract with Siemens and CAF and they can't do that if Bilfinger Berger object, and they can't break the contract and go immediately to Siemens and CAF to re-negotiate – that would break EU procurement rules. They would be stupid to fire Bilfinger anyway, because it will slow things down even further."

CAF is responsible for the tram vehicles, while Siemens' is behind power handling and signalling. Cllr Mackenzie has praised both firms for their "can do" approach, while accusing Bilfinger Berger of a "can't do" attitude.

Shirley-Anne Somerville, SNP MSP for the Lothians, has called for the Scottish Parliament's transport committee to undertake an "urgent inquiry".

She said: "Whether people were for or against the trams to start with, most are now simply watching in despair at the way this project has stalled.

"There are now really big questions about whether there is actually enough money to complete this project."

A TIE spokeswoman said the tram firm would not comment on the ongoing dispute, adding it remained committed to "resolving it amicably".

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