Court hearing over Metrolink contract

‘Something has gone seriously wrong’ — judge
Delays and cost over-runs hitting the expansion of Greater Manchester’s Metrolink network have been revealed in a High Court ruling.

Transport for Greater Manchester (TfGM) is at loggerheads with Thales Transport & Security Ltd, which has a £22 million contract for the tram operations system.

Thales is responsible for providing monitoring and communication equipment in each tram, trackside signalling and points control systems, control room computers and other equipment needed to direct, monitor and communicate with trams.

But four years into the project only £7.8 million has been paid to Thales and the company is facing potential claims for up to £36 million for delay. Thales is bidding for a 43-month time extension and £42.3 million from TfGM.

Judge Mr Justice Akenhead said of the contract: “Something has obviously gone serious wrong.

The reality is that this project has been subjected to very substantial delays with many of the sections of work being already late, compared with the original contractual completion requirements.

“In terms of milestones, no more than about one third are said to have been completed.”

While not forming any view on where responsibility lay, the judge said that if Thales’ £42.3 million claim turns out to be justified, the cost of the contract would be trebled.

He added: “If, as asserted by Thales, the project has and will cost £43 million more than it has priced for, something has gone seriously wrong, leaving aside whose fault it is.”

TfGM took Thales to the High Court, seeking disclosure of documents that it says it needs to vet Thales’ performance and to verify it has complied with its contractual obligations.

Thales has already handed over some of the requested documents, but resisted disclosure of others.

Mr Justice Akenhead directed disclosure of some of the documents sought by TfGM, saying it was entitled to vet, audit or check information already supplied by Thales.