Probe told about flaws in contract
BY HILARY DUNCANSON THE contract for the Edinburgh trams project was an “extremely poor deal” for the city council that should never have been made, an inquiry has heard.
A lawyer for several former employees of tram delivery company Tie said there were major problems with the deal.
Douglas Fairley QC said: “This was a contract which was ridiculous and which should never have been made.
“It was a terrible contract for Tie and, by extension, a terrible contract for CEC (City of Edinburgh Council).”
Fairley said the deal “tended to encourage disputes” and that the pricing information within it was “confusing and opaque”.
He described one aspect of the document as “clunky”, “cumbersome” and “at best, productive of extensive delays”.
Fairley added: “An unintended effect of that was to allow a contractor, if it had a mind to do so, to hold its employer to ransom.”
The inquiry, chaired by Lord Hardie, is examining why the trams were delivered late, over-budget and with a truncated route.
The eventual cost of the project at £776 million was more than double the sum earmarked.
The cost of the inquiry now stands at £9million, Transport Scotland said.
The inquiry also heard claims from the main contractors Bilfinger Construction UK that work to deal with utilities in the ground – which they had no control over – was the “critical delaying factor” throughout the project.
The inquiry continues today.