Trams face further delay after contractor fall out

Edinburgh's tram project suffered a major setback last week following the announcement that the start of infrastructure work on Princes Street would be delayed after a fall-out between tram bosses and contractors.

City leaders and Transports Initiative Edinburgh (TIE) announced the delay after claiming that project conglomerate BSC had made unacceptable demands in the days before the city thoroughfare closed to allow the development of the multi million pound tram network.

Councilor Jenny Dawe, leader of the City of Edinburgh Council said: “The Edinburgh Tram project has had to announce today that the planned tram infrastructure work due to commence on Princes Street cannot start as intended this weekend [21st February]. The utilities diversion work is still proceeding.

"The decision was brought about because the project was given 48 hours notice before the commencement of Princes Street works that the tram project consortium, BSC, comprising Bilfinger Berger, Siemens and CAF wished to impose unacceptable conditions as a requirement to start in Princes Street."

The announcement was made less that 24 hours before Princes Street was to be closed to traffic in order to accommodate necessary road works. Whilst no indication was given on the nature of the fall out, reports have suggested that BSC demanded up to an extra £80 million to start work on the Princes Street stage of the infrastructure, despite having signed a fixed cost contract in 2008.

Although it is not yet clear how long this dispute will last, Cllr Dawe confirmed that the closure of Princes Street would proceed as planned, saying: “The city can be reassured that we are strongly committed to introducing trams. They will of huge benefit in moving about our growing population in a quick, efficient and environmentally friendly way.”

The news is a further setback to the tram project, which has been plagued with problems recently. The closure of the Mound junction in October last year caused heavy delays in the city centre, whilst in November Willie Gallagher, then chairman of TIE—the group overseeing the project—resigned. Since then TIE, under the temporary chairmanship of David McKay, has gone on a charm offensive, and the Princes Street closure was seen as the next key test for the project.

Through the course of the closure all buses and taxis will be diverted along George Street, whilst other traffic will be guided towards Queen Street. Princes Street, Edinburgh’s main shopping throughfare, will be closed completely between South Charlotte Street and South St. David Street. However, it is likely that diversions will be shelved temporarily should the conflict between TIE and contractors prove to be long term.

A spokesperson for TIE added: "This announcement is supported by the City of Edinburgh Council, the project client, and Transport Scotland, the principal funder is fully aware of this situation."