Disruption: Tramworks at Gogar. Pic: © STV
Edinburgh City council could face a legal battle with the company contracted to build its new tram system, the city’s transport convener said today.
Councillor Gordon Mackenzie said the disputes with German firm Bilfinger Berger must be resolved within the month or the contract may be torn up.
But terminating the contract could lead to a lengthy court battle and further delays to the project.
The disputes centre on issues including project cost, timescale and changes to the route design.
Mr Mackenzie said: "This city will not be held to ransom by this contractor any longer. There needs to be a move to settle the project's contractual dispute within the month.
"There would be worse things for the project than for this contract to be terminated."
The tram line, linking Leith and the airport with 23 stops, is supposed to be completed by 2012.
Mr Mackenzie said the deadlock must be resolved sensibly but if nothing happens in the next few weeks, he will recommend pushing for breach-of-contract procedures.
He also accused Bilfinger Berger of making "ludicrous" requests for an extra 30 months to complete works.
"Every major infrastructure contract includes normal design development and while we accept that there have been substantial changes to the design, the claims that this contractor are putting in are from the realms of fantasy.
"Furthermore their unwillingness to get the job done while this dispute drags on is unacceptable.
"If we don't get an acceptable cost and programme soon I won't be able to recommend the council continues its support for the project with this contractor.
"We are at the brink. Personally I'm prepared for that and I also hope the consortium recognise it as well but I'm not optimistic."
Lack of progress
David Mackay, chairman of Edinburgh Trams, said: "I totally understand councillor Mackenzie's position. We have been hugely frustrated by the lack of progress in settling this dispute and the subsequent lack of progress on the ground."
The Scottish Government, which did not support the tram plan in Parliament, has repeatedly said the £500m project will get no extra funds.
David McLetchie, Scottish Conservative MSP for Edinburgh Pentlands, said: "I warned a year ago that Tie (Transport Initiatives Edinburgh) and the City of Edinburgh Council had to fight legal fire with fire and stop pussyfooting around with a contractor who had no intention of reaching a settlement to go forward in a positive manner and get on with the project.
"Twelve months on, there is still no resolution of this saga and it looks as if it will end up in court anyway. The citizens and taxpayers of the capital deserve better."
SNP Lothians MSP Shirley-Anne Somerville gave a cautious welcome to the ultimatum.
"Instead of coming to a stop in 2007 when Edinburgh's residents sent a clear message against the trams, Labour, the Lib Dems and the Tories have repeatedly allowed this issue to rumble on, spending vital funds on a transport folly," she said.
"After years of disruption, the Lib Dems, Labour and Tories may finally see what Edinburgh's travelling public have known all along, that this is the wrong project in the wrong place."
She warned that the dispute could turn into a costly court battle, and said: "As Labour continually clamour for more spending in Edinburgh and across the country and cry foul over cuts, it must be remembered that their vote for the tram project took £500m out of public spending to pour into unwanted and unneeded holes along Leith Walk."
