DLA Piper Scotland has advised client tie Ltd in its successful contract closure of the Edinburgh Tram Network project, which tie is delivering on behalf of City of Edinburgh Council.

After lengthy negotiations which began in October 2007, the landmark deal with international consortium Bilfinger Berger UK Limited, Siemens plc and Construcciones y Auxiliar de Ferrocarriles S.A. (CAF) is now complete. Delivery of this major Scottish infrastructure project is now well under way with the first tram tracks planned to be in place by September 2008.

Andrew Fitchie, Head of Projects, DLA Piper Scotland, said: "This is a significant transaction which has been successfully closed with a changing economic backdrop. It is the first publically funded major infrastructure project under the new SNP administration and posts a strong signal about Scotland's willingness to invest for the future in its cities and its people.

"The procurement strategy on which we have advised tie Limited and the city since late 2002 has eliminated many of the key risks associated with the delivery of a project of this size and in this challenging sector. We are very proud to have supported tie Limited on all aspects of the project procurement and implementation and I look forward to seeing the trams serving the city."

Willie Gallagher, Executive Chairman, tie Limited commented: "I am absolutely delighted that these negotiations have now reached a successful conclusion. Pressures on costs are not isolated to the tram project. The fact is that every major construction project in Scotland and in the UK is and will be impacted by these exact same factors. We have sought to successfully deal with them now.

"From the start of the procurement process my team set out to drive a fair and hard bargain to achieve the best deal for Edinburgh and DLA Piper have been in the trenches for us from day one."

Bilfinger Berger-Siemens-CAF is a consortium made up of three global companies. Members of the BBS-CAF consortium have played a major role in the construction of over 30 urban transport schemes around the world.

The tram manufacturer, CAF, a world leader in light and heavy rail, is best known in the UK as the company that provided the first train fleet for the Heathrow Express in a consortium with Siemens.