Edinburgh Tram Inquiry: Boss 'knew contract price would rise'

The Edinburgh trams inquiry has heard the head of the organisation charged with delivering the project knew from the outset the price would go up.

The claim was made by Richard Walker, a former senior manager of the consortium that built the line.

Mr Walker claimed Willie Gallagher, the chief executive of trams company Tie, said everyone knew the price would rise as soon as the contract was signed.

The inquiry is examining why the tram system was delivered years late.

It is also looking at why the project was £400m over budget and mired in legal dispute.

Mr Walker was the managing director of Bilfinger Berger UK, when it was involved in drawing up a contract to build the tramline for Edinburgh.

He told the inquiry he had concerns that costs would escalate because the designs were not complete.

However, he said Mr Gallacher had said everybody knew the costs would rise as soon as the contract was signed.

Mr Walker said he asked Mr Gallacher if City of Edinburgh Council realised the project could cost tens of million pounds more, and Mr Gallacher had assured him they were aware.

The inquiry has already heard that councillors thought it was a fixed-price deal.

The inquiry, before Lord Hardie, continues.