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Answers to YOUR questions on trams

When will work be finished? We find out...

Trams latest

Outlook readers have said the tram project is one of the most important issues facing the city. With this in mind and given the current state of uncertainty regarding progress on-street, we asked Councillor Gordon Mackenzie, Convener of the Council’s Transport, Infrastructure and Environment committee, some important questions...

Q. It was reported in the press that the trams won’t be running until January 2014. This is months, if not years, behind schedule. Why is this?

A. 2014 is a date that was mentioned by the contractor to try to bring pressure on tie limited and the Council to pay them more money. We refute the claim they have made and believe a nine-month extension to summer 2012 is reasonable given the additional utility works which have been needed.

It is widely recognised that underground/utility works are often the reason for much of the uncertainty in construction projects like this. Given that 98 per cent of these works have now been completed, it’s unreasonable to suggest that the remainder of the project should take a further 30 months (on top of the 38 months the contractor agreed originally).

Q. So what is the main issue causing this dispute?

A. In basic terms, time and money. The contract stated that there would be ‘normal design development’ during the course of the project. The dispute is over whether several hundred design amendments would be expected within the course of the project and, as such, are ‘normal’ or additional changes.

There is also the issue of the extension of time, as discussed previously, required to complete the utility diversion works.

Q. Surely this dispute means more money? Does this mean you can’t afford to build the full route?

A. There will be some additional costs but this does not mean we can’t afford to build the whole route. Currently, as there is no agreement on the issues under dispute, we can’t provide a final figure for the cost of the project. But there are no plans to alter the original scope of works between the airport and Newhaven at present.

Q. Could one part of the route be up-and-running before the rest?

A. If the dispute is resolved, one section of the line could open ahead of the rest.

But, for now, that’s hypothetical. Our attention is focused on getting the contractor to deliver to the contract.

Q. Why can’t you just sack the contractor causing all the problems?

A. As with any project of this size and complexity, there are contractual processes which need to be followed. Legally, the parties to the contract have to behave reasonably in exercising their rights and there would be heavy penalties for either party if they did not do so.

We’ve been legally advised to rigorously enforce the terms of the contract and protect the public purse as far as possible.

However, sacking the contractor is an option that does remain open to us, but there would be associated consequences.

Q. Why is the Council not getting more involved in settling this dispute?

A. Because we agree with, and fully support, the approach being taken by tie’s management team – it is the right approach for the Edinburgh taxpayer. Our direct involvement would only provide the contractor with an excuse not to deal with tie. As this is a legal process there are only certain individuals who can represent either side in negotiations and, while we do not sit in the meetings themselves, we are kept fully briefed as to all the outcomes.

Q. So, what does all this mean for getting the project finished? Surely any time in 2012 is now a pipedream?

A. There’s no doubt on our side that this project can be finished in 2012. We have commissioned a series of external auditors to scrutinise the programme and they have determined that we are correct in our view that the programme is still achievable within 2012.

But if the contractor continues to behave as they are currently doing, the delivery date will continue to slip.

Our main aim is to resolve this dispute and deliver the project as quickly and cost effectively as possible.