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Cross party support to back Edinburgh tram company in contract dispute

posted 21 Aug 2009, 03:32 by myEdinburgh Admin
A motion was passed unanimously by all parties yesterday (Thursday, 20 August) at a meeting of the City of Edinburgh Council.

The motion acknowledged that the City Council supports tie in delivering the tram project for Edinburgh and its efforts to provide good value for money for the City.

The Council motion also recognised that tie Ltd has made extensive efforts in trying to resolve the issues which are at dispute with the contractor through negotiation and mediation but that this approach has not produced the desired resolution.

Last week tie entered into a formal dispute resolution process with the BSC consortium in an attempt to resolve the dispute for which some of the issues have been ongoing for some months.

Further details of the dispute resolution process are contained in a report which was agreed by full council today. See link attached.

Cllr Gordon Mackenzie, Convener of Transport Committee, said: “We are delighted that all parties in the council have united to support tie in this process.  I believe people in Edinburgh will welcome the news that we have come together on this issue, putting aside our differences on the trams principle, to serve the best interests of the city and the public purse.”

Wording from today's Liberal Demomcrat motion:
"While recognising there are divisions on the principle of Trams, Council is united in expressing its ongoing determination and full support for tie's efforts to continue to protect the public purse from the effect of undue programme delay and any unwarranted financial claims not provided for within the agreed contract signed by all parties involved in the trams project.

Council fully acknowledges that tie Ltd has put extensive efforts into resolving issues at dispute with the contractor through negotiation and mediation but that this approach has not produced the desired resolution.

The Council therefore supports the utilisation of the clearly documented dispute resolution procedures within the agreed contract as a means of ensuring the most appropriate resolution of the outstanding commercial issues on a formal basis to ensure best value for money for the public purse."
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