Lawyers paradise - 7 years late, 3x the cost... and a city full of lawsuits


Edinburgh, Scotland.
Mid-2000s.
A shiny new tram network was promised.
Fast, green, world-class transport across the city.

Greta was not born yet… but she could be smiling for ours to a project like this.

The vehicle?
Of course…

A complex PPP scheme led by Transport Initiatives Edinburgh (TIE) with multiple contractors, including Bilfinger Berger and Siemens.

​
Signed in 2006.
Cost? £375 million.
Opening date? 2011.

What actually happened?

  • Endless disputes between the public agency and the private contractors.
  • Construction delays so bad that people literally forgot the city was supposed to have trams.
  • Streets ripped up for years, paralyzing local businesses.
  • Costs ballooned to £1 billion — almost 3x the original.

Lawyers paradise… Who sued who?

  • Contractors sued the public agency for design changes and late payments.
  • The public agency threatened to sue the contractors for cost overruns and missed deadlines.
  • Residents and businesses started separate lawsuits over lost income and disturbance.

2014 — The first line finally opens.
Seven years late.
One single line instead of the full network.

The political fallout?

  • Heads rolled.
  • Public trust in PPPs collapsed.
  • Edinburgh became a punchline for bad project management across Europe.
  • Great was born… unhappy.

Brutal lessons:

  • If the project scope isn’t 100% locked before signing, you're building a time bomb.
  • Multi-contractor PPPs need wartime-grade governance, not PowerPoint slides.
  • Political wishful thinking kills delivery discipline.
  • Litigation isn't a risk; it’s a certainty when your contract is a mess.

Moral:
If your project needs seven years of excuses, lawsuits, and triple the money,
you didn’t build infrastructure.
You built a monument to failure.

I have other interesting and horror stories about my last project in the link below.

$99.90

The 15 Top Lessons of a PPP Project Nightmare

Learn about:
The number 1 killer of Projects
Why this was not going to be just "another construction project, mate"... Read more

​

PD 1: If you liked this email, don't keep it in secret and forward it to a friend. They will thank you enormously one day.

PD 2: If somebody has sent you this email and you want to receive emails like this yourself, visit vicentevalencia.com

PD 3: If you want unsubscribe, click the link below.

Vicente Valencia

Weekly insights on how to perform when it matters | High-stakes decisions. Real situations. No BS. | 👇JOIN +2k readers 👇

Read more from Vicente Valencia

$10 million companies are not built on $10 tasks. Read this again. Let it sink. I told something like that once to my brother when we were expanding our real estate company in Panama. Because when you grow, something funny happens. You say you want a bigger business. More sales. More projects. More money. More freedom. And then you spend your day doing things someone else could do. Answering small messages. Chasing tiny problems. Fixing details. Moving papers. Checking things that do not move...

Middle of a tender. PPP project. Pressure everywhere. The client wants the best offer. The lenders want certainty. The SPV wants bankability. The construction company wants protection. The bid team wants sleep. The bid manager wants to make it until the 5 days snap holidays in Cuba starting the day after the submission. Somewhere in the middle of that beautiful circus, the SPV and the construction company start negotiating the construction contract. The contract that will sit behind the...

Think about an event. I don’t know. A political one. Mr Trump visiting Mr Xi in China. Same event. Same date. Some newspapers will say Trump is brilliant. Others will say Trump went there to drop his pants, beg, and give Xi everything he asked for. Same event. Same dates. Different newspapers. The difference? Different points of view. And different agendas. Oh, surprise. Now you know why the client, if you are on the other side of the table, doesn’t have much sympathy for you and thinks you...