Wakilii

Alliance Technical Services Ltd v Busitema University (Arbitration Cause 14 of 2023)

High Court · [2026] UGCOMMC 341 · 2026 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application to register and enforce an Adjudicator's Award arising from a construction contract dispute
Decision
Adjudicator's award registered and enforceable as a court decree; contract between Alliance Technical Services Limited and Busitema University reinstated

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court held that an Adjudicator's award issued under the Arbitration and Conciliation Act must be registered and enforced where the applicant has complied with procedural requirements and the time for setting aside the award has expired. The contract termination by Busitema University was wrongful as the contractor had not abandoned the site and had renewed the performance guarantee before expiry. The court registered the award as a decree, ordering reinstatement of the contract and payment of outstanding certified sums.

Outcome

Adjudicator's award registered and enforceable as a court decree; contract between Alliance Technical Services Limited and Busitema University reinstated

Facts

Alliance Technical Services Limited entered into a construction contract with Busitema University on 14 June 2021 for a Lecture and Laboratory Block at the Maritime Institute, Namasagali Campus. The contract sum was UGX 12,139,651,555, later increased to UGX 13,946,017,732. On 10 January 2023, the University terminated the contract citing alleged site abandonment for over 28 days and failure to maintain a valid performance guarantee. The contractor initiated adjudication proceedings through the Uganda Institution of Professional Engineers (UIPE), which appointed Eng. Serunjogi Steven. On 5 May 2023, the Adjudicator found in favour of the contractor, determining that site daily logs showed consistent staff presence throughout November 2022, disproving abandonment, and that the performance guarantee had been renewed on 29 November 2022 and received by the consultant on 30 November 2022, before the original security expired. The Adjudicator ordered contract reinstatement, an injunction against liquidation of bank guarantees, and payment of UGX 1,094,577,032 certified under Interim Payment Certificate No. 2. The University failed to comply, prompting this application for registration and enforcement of the award.

Issues

  1. Whether the Adjudicator's award should be registered and confirmed by court as binding for purposes of enforcement.

Orders

  • The Adjudicator's Award dated 5th May 2023 is hereby registered as a decree of this Court for purposes of enforcement.
  • The costs of this application shall follow the event and are awarded to the Applicant.

Rules and key headnotes

Arbitration & ADR — Enforcement of Awards — Registration and Recognition
An arbitral award shall be recognised as binding and enforced by the court upon written application where the applicant furnishes the authenticated award and the underlying agreement, and the time for setting aside the award has expired or such application has been refused.
Arbitration & ADR — Judicial Intervention — Principle of Minimal Intervention
Except as provided in the Arbitration and Conciliation Act, no court shall intervene in matters governed by the Act. The court does not sit as an appellate body to re-litigate technical findings but to ensure that the expert determination reached by the parties' chosen adjudicator is given the force of law.
Arbitration & ADR — Government Entities — Binding Effect
The Arbitration and Conciliation Act binds the Government, and government-funded institutions such as public universities are expressly bound by arbitration and adjudication proceedings under the Act.
Contract Law — Breach of Contract — Fundamental Breach and Termination
A party is entitled to treat a contract as discharged by breach where the other party commits a fundamental breach. Slow progress due to technical delays such as geotechnical tests and site relocation does not constitute abandonment of the site or a fundamental breach justifying termination where daily site logs show consistent staff presence and ongoing work activity.
Contract Law — Construction Contracts — Performance Guarantees
Where a contractor obtains an extension of a performance guarantee before the original security expires and the renewed guarantee is received by the employer's consultant, the employer's allegation of failure to maintain a valid performance guarantee is without factual or legal basis and cannot justify contract termination.
Contract Law — Construction Contracts — Payment Obligations
Under the FIDIC General Conditions of Contract, an employer has a mandatory obligation to pay certified amounts within 30 days. Failure to discharge this duty while simultaneously terminating the contract for alleged breaches constitutes disproportionate conduct.

Legislation cited (11)

Cases cited (2)

  • Media Airtime Limited v Uganda Broadcasting Corporation (HCCS No. 752 of 2008)
  • Kyarimpa v Nassozi (C/S No. 794 of 2016)

Full judgment

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Alliance Technical Services Ltd v Busitema University (Arbitration Cause 14 of 2023) [2026] UGCommC 341 (20 May 2026)
Source: this page presents Wakilii’s issue analysis and metadata for a publicly reported Ugandan judgment. Any AI-generated summary is marked as such. Judgment text is sourced from the Uganda Legal Information Institute (ulii.org). Wakilii is not affiliated with ULII.