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Kampala Flyover contractors sued over Shs941m
Ongoing construction works of the Kampala flyover project. PHOTO | FILE | COURTESY
What you need to know:
- The case. Uniworks accuses Roko Construction of refusing to pay Shs941m for sub-contracted works for which Shimizu Kanoike Joint Venture is held responsible as the main contractor.
A sub-contractor on the Kampala Flyover Project has sued two main contractors, seeking to recover more than Shs900m for breach of contract.
In a case filed before the Commercial Division of the High Court, Uniworks Transport and Logistics claims that Roko Constructions and Shimizu Kanoike Joint Venture, the Kampala Flyover Project main contractors, breached contract for payment of Shs941m.
Uniworks claims that sometime on April 8, 2020, it entered into a sub-contract, which was a supplemental contract between Roko and Shimizu to excavate, load and evacuate debris from the Kampala Flyover Construction Package 2 Works for an initial sum of Shs49m.
According to documents filed by Jambo and Company Advocates, Uniworks claims that on November 3, 2020, after the initial contract, Roko further engaged its services in an expanded scope of quantities, activities and unit rates.
After completing works, Uniworks, together with Roko, according to court documents, later held meetings to determine the quantities and works done, before arriving at a total sum of Shs941m.
Uniworks were subsequently issued by Roko referred it to Shimizu for payment.
However, despite several reminders, no payment was made and now Uniworks says it holds Shimizu responsible since the contract between Roko and Shimizu provides that in the event of failure of a contractor in the sub-contract to pay for an engagement, the main contractor takes responsibility and is liable to pay for services offered by a sub-contractor with a provision to deduct 15 per cent.
Court documents also indicate that some time on May 17, 2021, Uniworks reminded Shimizu to pay the outstanding but was notified in a July 27, 2021 letter that all payments had been made to Roko. However, efforts to recover its money from Roko have been futile.
Therefore, Uniworks wants court to order Roko and Shimizu Kanoike Joint Venture to pay Shs941m being the amount due, general damages, interest and costs of the suit.
