Siemens may take over as lead firm in bid to solve dispute

Published on Tuesday 9 March 2010 21:50

THE lead firm in the consortium building Edinburgh's tram line would be replaced with one of its partners under an option to be considered by project chiefs today.

Bilfinger Berger has been at the centre of a bitter dispute with developers TIE over changes to the scheme since February last year. This led to a month-long work stoppage in Princes Street, while other track-laying work on roads has been halted.

The dispute was referred to an independent resolution process last August, with Bilfinger Berger believed to have won four of the five rounds settled so far – along with several million pounds.

However, TIE has become frustrated that the process has dragged on months past its expected completion at the end of last year, adding further delays.

TIE has blamed unreasonable demands by the firm, which it has said could add 80 million to costs.

However, some legal experts believe that deficiencies in the way the construction contract was drawn up have contributed to the problems.

The tram project board, comprising TIE officials and councillors, will be given five options – without any recommendation – in an attempt to resolve the situation.

These are believed to include replacing Bilfinger Berger with consortium partner Siemens, which would take over management of the sub-contractors involved in work on the ground.

However, it is understood this would involve extra costs – such as potential litigation by Bilfinger Berger.

Mandy Haeburn-Little, director of customer services for Edinburgh Trams, which will operate services, said last night: "Edinburgh Trams' priority is to protect the public purse and to deliver the integrated 21st Century transport system Scotland's capital city deserves."