TRAM utilities work in Shandwick Place has been completed three weeks ahead of schedule.
Contractors will now be able to move in and begin infrastructure works on the project earlier than planned.
Works have also been completed in North St Andrew Street, allowing contractor INFRACO to move on to the site, the city council said.
However, as the Evening News revealed in January, £1.1 million of the contingency pot has been used.
Businesses in the Capital have been keen to see the project move forward as quickly as possible to increase the chances of bringing forward the reopening of Shandwick Place in 2013.
The city council claimed progress had been made in Shandwick Place, Princes Street, the Mound, St Andrew Square, Gogar and Haymarket Yards, which has negated the need to further dip into the £34m pot.
Councillor Gordon Mackenzie, the city’s transport convener, said: “Hopefully, the good progress on this phase of the work will contribute to the increasing sense of confidence in the revised project management arrangements.”