tie and Bilfinger Berger have until Thursday 19th March to solve the money issues which have seen a delay in the start of tram construction work in Princes Street. If no agreement is reached between the two parties an independent panel of experts will be bought in to bang their heads together and to make a final decision on how much money should be owed to Bilfinger Berger (they are believed to want £20 million). A further dispute between the two parties has also been revealed over the final design of the tram line.
The design of the tram line between the Airport and Newhaven was originally let to Parsons Brinkerhoff in 2005 but as part of the contract signed last year by the consortium Bilfinger Berger took over the final design of the line – and this is what is believed to have been causing the delay. It is also believed that the design of the line is £10 million over budget.
The parts of the line which are causing the delays in the final design include Picardy Place, York Place and Princes Street. Bilfinger Berger, tie and the City Council can not reach full agreement on these sections. It had originally been planned that this would be completed by February.
It has been revealed in the Edinburgh Evening News that there have been major problems throughout the proposed route with many unidentified utility cables and pipes being discovered – despite a survey taking place before any work commenced. Examples include electricity cables at a site near to the railway line at Balgreen whilst piling work has been required for a new embankment for the tram passing Murrayfield Rugby Stadium.
Consultants to Bilfinger Berger, Citigate Dewe Rogerson, have claimed that the dispute is not actually over millions of pounds (£20 million is the latest figure quoted in the local media) but rather thousands. They also say that they have been seeking a resolution to the problem throughout the dispute.
John Mullin, Managing Director of Citigate Dewe Rogerson, said: “It is regrettable that agreement has not yet been reached. Whilst recognising that the contract allows for mediation on individual disputes, this will not deal with all of the issues already identified and notified to Tie in a timely manner. The dispute comes about regarding the provision of temporary bus lanes in Princes Street. Bilfinger Berger put in a quote for this but the estimates were disputed by tie and the difference was thousands of pounds, not millions."
Around 100 issues still remain outstanding between the two parties – according to Bilfinger Berger. Mr Mullin added: “Therefore, in the interests of moving forward for the sake of all parties involved, and those indirectly affected, we suggested that an independent figure or body convene a round table discussion to seek an encompassing and lasting solution to the current impasse. However, we understand that this proposal has not been acceptable to tie."
With an agreement between tie and Bilfinger Berger apparently still not close they have been given until Thursday 19th March, otherwise an independent panel of construction industry experts would be called in. This panel would take evidence from both tie and Bilfinger Berger on the dispute before deciding on how much extra money should be given for the construction – if any. This process would take around six weeks to complete bringing more delays to the project and could see construction work not starting until the summer.
Source: The Scotsman & BBC News Online