The Tram firm Transport Initiatives Edinburgh (TIE) face further legal action after contractors BSC requested an extra £3m for the work they completed in 2009.
The Tram contractor BSC, which includes Bilfinger Berger, tram vehicle manufacturer CAF and Siemens are now taking the dispute to an adjudicator to ascertain the additional payment they are due for the track construction on Princes Street. This new dispute forebodes the mediation talks scheduled for March which are to be a final attempt to recover the entire project.
Alastair Richards, managing director of TIE still remains hopeful that, despite this latest dispute, a compromise will be reached: "We need a resolution in the current stand-off to make real progress. We're positive that mediation will see some way of that happening."
"As soon as the arguing is done, there's no reason why the track laying can't be completed.”
However as a deadline for the completion of the tracks continues to be pushed back, many critics are still apprehensive as to whether the track will even be completed by 2012.
Lothian’s MSP Shirley-Anne Somerville said: "It is clear to anyone that the tram will not be running in 2011 - even TIE and the Labour, Lib Dem and Tory tram alliance can see that.”
"Edinburgh's Trams certainly won't be taking anyone to work in 2011 and I'd be surprised if they are taking anyone in Edinburgh anywhere in 2012 either.”
This prediction seems more and more realistic as cracks begin to appear in the rubber track along Princes Street, leaving many questioning the contractor’s quality of work.
Somerville said: "It's barely over a year since these tracks were laid. It's, therefore, appalling to learn that they already need repaired”.
She added: "We also need to know why this has happened. The track laying was earlier criticised as a 'rush job'. Is this what has caused the problem?"