Edinburgh Tram promoter Transport Initiatives Edinburgh (TIE) has admitted that its dispute with contractor Bilfinger Berger is likely to delay the scheme beyond the proposed 2012 opening date.
TIE was forced to make the admission after an audit of the project was published following a Freedom of Information request.
The audit said that the project could be completed by 2012, assuming that Bilfinger Berger returned to on-street works in the Scottish capital by July this year.
But Bilfinger Berger refuses to restart work on the scheme until utility diversions are complete.
TIE is now saying that March 2013 is the likely opening date.
The audit submitted to Transport Scotland, the project’s main funder, was produced in May.
Transport Scotland is providing £500M of the project’s total £545M budget, but this is likely to be exceeded.
A spokeswoman said that the March 2013 opening date failed to account for mitigation measures that may be put in place by the contractor to recover the lost time.