Members of the Council's Transport and Environment Committee will now consider an update report on Phase 2 next week.
Phase 2 of the scheme comprises flood defences at Murrayfield/Roseburn and at Coltbridge, Damside, Belford and Edinburgh Sports Club.
The expected estimated cost of a revised Phase 2 plan is £25.5m and the council said lessons learned from previous contracts will be taken into account in relation to the design, risk allocation, contract documents and project governance.
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In the report, councillors are asked to approve the creation of a working group, which would fully explore a reconfigured scheme for Phase 2 to ensure it is fit for purpose. The group would consist of elected members, community councils, other key stakeholders and council officers.
The report also proposes an independent review of the design, risk allocation and contract documentation carried out on Phase 2 to date, to ensure greater cost certainty for this part of the scheme.
Councillor Lesley Hinds, Transport and Environment Convener, said: "Phase 1 of the Water of Leith Flood Prevention Scheme is almost complete now and we're turning our attention in detail to Phase 2. Given the issues experienced with the first phase, it is absolutely critical that we learn the lessons required to make sure the next phase of the project runs smoothly.
"The working group we're proposing will enable major stakeholders, elected members, community councils and Council officers to work in partnership to finalise a reconfigured scheme which is fit for purpose and meets the available budget."
Phase 1 is scheduled for completion by 31 August.
(JP/CD)
