The State Government is continuing to pursue claims against contractor for problem-plagued North Terrace tram extension

A review into why the North Terrace tram extension was delayed and over budget is also being held up, as the State Government pursues claims against the contractor.

A review into why the North Terrace tram extension was delayed and over budget is also being held up, as the State Government pursues claims against the contractor.

Work on the boulevard will again kick off this year as the Adelaide City Council embarks on a $5 million public realm upgrade.

Despite the problem-plagued tram line being operational for months, a warts and all review that Transport Minister Stephan Knoll said would find out how the previous government “made $10 million disappear” is still not completed.

Mr Knoll told The Advertiser this was because the State Government needed to work through a claims process with contractor Downer Group.

“The State Government is committed to conducting an internal review into the North Terrace tram extension which the department has started looking at, however this cannot be finalised until claims with the contractor have been settled,” he said.

The figure being sought in the claims process was not disclosed when The Advertiser asked.

Construction on the new tram lines on the corner of North Tce and King William St. Picture: AAP / Russell Millard

But in September, when it was revealed the budget for the 1km extension could balloon out to as much as $124 million from its original $80 million estimate, Mr Knoll said the State Government’s “upper limit” of exposure was $44 million and that would be the focus of the claims process.

The $37 million earmarked in the State Budget for the now abandoned right-hand turn on to King William St is in line to go towards the original projects’ big blowout.

Labor transport spokesman Tom Koutsantonis said the review would show that the Liberals could not manage a tram project.

“The Liberals’ management of tram projects has been a complete debacle, and this is just the latest example of their incompetent management,” he said.

“The Liberals missed four self-imposed deadlines for the North Terrace tram extension, including one deadline Stephan Knoll said was “set in stone”.”

As political parties squabble about who is to blame for the project, Adelaide City Council prepares to embark on its part of the expansion.

A council spokeswoman said it would spend $5 million on the North Tce public realm upgrade.

“This upgrade is to occur on the southern side of the North Terrace in two key areas, between King William Road and Gawler Place and between Frome Street and East Terrace,” she said. “The project is being planned to reflect the northern side of the North Terrace.”

She said it was anticipated it would begin during the middle of this year and be completed before the year is out.

But a key factor on the start date will be when the council can get natural slate pavers that match those already existing other areas of North Tce.