Tram hits the buffers?

Biggest news of last week was the possible derailment of Edinburgh's tram project. It seems that the consortium contracted to carry out the construction work are claiming something in the region of £50 - £80 million to continue their work (what's a few tens of millions between friends?) TIE, the council-owned company set up to deliver the city's tram system, say that the contract is water-tight: I certainly hope so. If there are any loopholes in the trams contract, heads must roll.
So far, £150 million has been spent on the scheme with not a line laid. The total cost of the line (the line, mind, not a network) is £545 million - the Scottish government has committed £500 million and has already said that not a penny more will be handed over, so if more money has to be found it would have to come from the city council. The city council is not, sadly, flush with excess cash.
Negotiations are ongoing, but I hope that the council stands firm. My concern is that the current administration does have a track record of buckling under pressure - schools closures, for example - and may feel that it is worth paying a bit extra to get the project delivered on time. They shouldn't - the public won't thank them for it - they should stick it out and refuse to be held to ransom. Some backbone is required, but the contractors should be left in no doubt that enough is enough.
I do feel, however, that the current game of brinkmanship will have damaging consequences for Line 1b, the so-called 'Granton Spur'. The council must make a decision on this part of the network next month, and currently the finances just don't stack up. Should there be a protracted legal wrangle over contracts, the cost and the delay could be the death knell of the Granton spur. That would leaves us not with a tram system, but a solitary tram line. I supported the thinking behind an integrated transport system with trams at it's core, but I would have really difficulty in arguing the case for a single tram line.
Here's hoping the negotiations go smoothly and the project can get back on track without further delay - it seems that the majority of Edinburgh citizens are already heartily sick of the scheme and any further hold ups will prompt increasingly strident calls to scrap the whole scheme.