EDINBURGH council officials are considering taking legal action over tram works carried out on Leith Walk that will require extended road closures to repair.

Traders on the thoroughfare are braced for further disruption as utility diversions that were supposed to be completed ahead of track-laying are fixed – even though they will now not benefit from the tram line, which has been terminated in the city centre to save money.

The Herald understands that legal officers at City of Edinburgh Council have been asked to explore if any action can be taken against Carillion, the utility firm that won the contract to divert underground pipes and cables along the 11-mile original tram route from Edinburgh Airport to Newhaven Harbour.

Around £1 million is due to be spent employing a new contractor to repair faults and complete utility diversions on Leith Walk, mostly involving Scottish Water mains.

A senior council source said: "Councillors are aware that the utilities had not been done properly and we're now looking at pursuing the people who originally did the work."

The dispute has emerged as Edinburgh's Labour/SNP coalition are considering increasing the £3.2m that was made available last year to restore Leith Walk to its pre-tram state and combining the reinstatement works with the utility repairs to cut down on disruption.

The corridor was left with temporary road surfaces and junctions in December 2009 when the initial utility work was completed ahead of the track-laying phase.

Lesley Hinds, the council's transport convenor, said: "We want to make Leith Walk a thriving, attractive place for people who live there and want to shop there. We're looking at extra resources for that as the £3.2m will not be a substantial enough sum."

Asked about the dispute with Carillion, she added: "The council is looking at the options regarding the condition of the works that were left by the previous contractor. "