Riding to rescue again – but this could be biggest challenge yet

The Scottish Government agency may not have taken over the development yet, but it is likely to play an increasingly active role and be in charge of building any future tram line extensions.

It has already completed a series of major road and rail projects – one of its key roles since being created five years ago. These include stepping in to salvage floundering schemes such as the Stirling-Alloa-Kincardine railway, which had been running two years late and gone more than twice over budget.

It also took control of the Glasgow airport rail link – which also suffered cost increases – before the line was axed.

The agency’s track record means there was a certain inevitability about yesterday’s announcement of its involvement with the tram project. However, completing the scheme will be arguably more problematic than anything it has tackled so far.

The move perhaps shows the political imperative of getting the mess sorted in Scotland’s capital outweighs the risks of becoming involved – and effectively complicit – in a project that few would bet won’t suffer yet more cost increases and delays.

However, construction industry leaders describe the agency as “steady Eddies” which, crucially, had proved to ministers it could complete projects on budget – giving them “cost certainty”.

These projects include the M74 extension in Glasgow, the A80-M80 upgrade between Glasgow and Stirling, and the Airdrie-Bathgate rail link.

It is also in charge of the new Forth crossing and Edinburgh-Glasgow rail electrification, together worth some £2.5 billion.

Although the overall cost of the M74 project has mushroomed to £692 million due to previous problems, Transport Scotland has said the £445m construction contract was completed several months early and £15-20m below budget.

It is understood this was achieved by the agency agreeing to a higher price from the sole bidder in return for a watertight fixed-price contract.

In similar vein, Transport Scotland is credited with keeping a junction upgrade on the A80 near Glasgow on budget, despite major extra work required caused by boggy ground.

Alan Watt, chief executive of the Civil Engineering Contractors Association in Scotland, said: “If Transport Scotland had managed the tram project from the start, we would not be in the mess we are in. They have a good track record where they have controlled the project from start to finish.”

However, he said the tram project would be very different. “The difficulty here is the devil in the detail, of taking over an existing contract which Transport Scotland had no part in drawing up, which could include some serious ‘legacy’ difficulties,” he said.

Jackie McGuire, head of the public services group at law firm Brodies, said Transport Scotland’s sheer size gave it an advantage.

She said: “It has run with much bigger transport projects than Edinburgh or any local authority. It also has better resources, with a range of different experts to call on if required, and a track record of finishing projects on time and on budget.”