Richard Jeffrey, Chief Executive of tie, has recently written to businesses along the route of the Edinburgh Tramway confirming that the ongoing dispute between his firm and Bilfinger Berger has no signs of a breakthrough. On street works have not yet restarted following Christmas as the two parties attempt to find a resolution to their dispute with rumours are circulating that Bilfinger Berger will be removed from the contract.
In the letter Mr Jeffrey said: “There is still no sign of a breakthrough as a result of our sustained efforts to improve the relationship with the consortium, notably with regard to the works being undertaken by Bilfinger Berger. Given the range of ongoing disagreements with the consortium over the project, and the continued slow progress on site, the board have asked me to examine all the options available to us in the next few weeks. This information will, for obvious reasons, remain commercially confidential."
There remain seven outstanding disputes between the two but these could delay work for several more months, with no resolution seemingly on the horizon. It is believed that comparisons are being drawn with a metro project in Vancouver, Canada where Bilfinger Berger were removed from their contract because of several months of inactivity.
Mr Jeffrey also commented: “The current rate of progress is far below that which we expect. I appreciate that the fact that the ongoing issues are causing uncertainty and, in some cases, anger amongst city businesses and the people of Edinburgh. The current state of affairs could not be further from how we would all wish to see this vital project delivered."
A meeting is due to take place this month between tie and Bilfinger Berger, after which a decision on the future of the project is likely to be made.
Source: The Scotsman