Bilfinger in showdown talks over £545m tram row

Grant Prior 12 years ago
Share

Bilfinger Berger chiefs will sit down with Edinburgh officials for two weeks of mediation talks in a bid to break the deadlock in a dispute that has brought work on the city’s £545m tram project to a virtual standstill.

A contractual dispute between the tram company Tie and contractor Bilfinger Berger has pushed the project over budget and behind schedule.

Tie has refused to give any details of the mediation process. But the BBC said it is understood talks will take place at a hotel and will include Transport Scotland representatives.

It is thought the negotiations could take up to two weeks to complete.

Tie’s chief executive, Richard Jeffrey, said: “Mediation is a critical juncture for the tram project and I am confident that all parties can work together to find a way forward.

“While we understand that there is a lot of interest in the process it is vital that it is carried out in private in order for us to gain the best deal possible for the city, and all those involved have agreed to maintain a policy of confidentiality throughout.”

Sue Bruce, council chief executive, said: “I believe everyone involved in the tram project, as well as the people living and working in Edinburgh, has a vested interest in the outcome of the mediation process.

“We all want to see the project continue as quickly as possible and get trams running in the city, however it is crucial that those involved are given the opportunity to work to find a solution for going forward.”

The Scottish government has capped its investment in the project at £500m, with the city council paying the remainder.

The local authority has been taking steps to increase its contribution to up to £100m to cover additional costs, but council chiefs have said they do not know how far a £600m budget will go.

It is hoped the route will be finished by the end of 2013.

Latest news

Former Erith operations director joins John F Hunt

Scott Exell named new operations director at demolition specialist John F Hunt
6 hours ago

Green light for £135m Leeds twin tower resi scheme

Construction to start in New Year on 500 build-to-rent apartments
14 hours ago

Plans in for £40m surf park at former Kent colliery

Seahive surf lagoon and health resort will be built near Deal
22 hours ago

Crushed demolition worker vows to return to industry

Shannon Brasier hoping to return to construction following horror accident
22 hours ago

Mount Anvil to start 900-home North London estate rebuild

Planning approval paves way for Barnsbury Estate rebuild in Islington
22 hours ago

Green light for major laboratory campus in Cambridge

Developer BioMed to tender first building on 600,000 sq ft lab complex in the New Year
23 hours ago

Belfast firm signs the biggest work deal yet under Project Gigabit

Fibrus to hook-up rural Cumbria to lightning-fast broadband under £108m deal
21 hours ago

McLaren wins Leeds logistics park contract

Work to start imminently on warehouse complex for Firethorn Trust
2 days ago

Work restarts on £683m waste power plant after site death

Construction suspended for a week of investigations following fatality
2 days ago

Demolition starts on £135m Wigan Galleries scheme

Contractor BCEGI starts work on project to redevelop Wigan town centre
2 days ago

Amey CEO to step down following private equity buyout

Amanda Fisher to leave once business is transferred to new owners
2 days ago

New body set up to vet plant operator card schemes

Contractor trades bodies unite to tackle competency concerns over plant operator skills cards
2 days ago

Kier leads switch to hybrid battery generators

Battery units work alongside smaller generators cutting run times by nearly 60%
2 days ago

Plans in for first Leeds co-living scheme

Watkin Jones submits plan to convert old Direct Line HQ into 230 studio flats
2 days ago

Demolition worker crushed by excavator

Court hears 20-year-old woman was left with "life changing injuries"
3 days ago

Government pays £700m for 50% stake in Sizewell C

New body, Great British Nuclear, will be set up to develop pipeline of nuclear projects
3 days ago

Costain wins Heathrow Airport asset renewal deal

Firm takes early contractor involvement role in Terminal 2 baggage handling upgrade
3 days ago

Worker killed on £683m waste power plant site

Fatal collision involving heavy goods vehicle on giant north London site
3 days ago

HS2 JV shifts four Wembley Stadiums of earth in record time

EKFB team digs and hauls 15 million cu m of muck in 20 months
3 days ago

Milestone wins £300m Wiltshire highways upkeep

Ringway will hand over to Milestone in March next year
3 days ago

Low-risk business model helps Renew post record results

Renew reveals latest acquisition with £15.6m purchase of water specialist Enisca
3 days ago

London Albert Embankment hotel towers approved

Two separate hotels rising to 26 and 29 storeys approved
3 days ago

Keltbray names new director of strategic engineering

Tim Lohmann takes up newly-formed role to drive innovative engineering solutions
3 days ago

Go-ahead for £200m lithium refinery on Teesside

Work to start next year on Europe's first lithium hydroxide processing plant
4 days ago

HS2 agency workers paid the wrong wages

Payroll software problems leave workers out of pocket
4 days ago

Electric car whizz joins O’Rourke

Contractor looking to learn tech lessons from other sectors
4 days ago

Electrical contractors still confident despite staff shortages

Order books healthy but worries grow over margins
4 days ago

BAM to deliver £44m Yeovil College campus build

BAM will submit a planning application next month to start work later next year
4 days ago

Bouygues starts London 700-home council estate rebuild

Developer Linkcity seals financial close on Old Kent Road Tustin Estate job
4 days ago

Construction’s “Leading Lights” recognised

Full details of latest winners of Considerate Constructor Scheme's latest awards
4 days ago

Contractor services