Consolidated Contractors Ltd v City Council of Kampala (HCT-00-CC-CS 11 of 2008)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
Held that where a contractor performs preliminary work under a valid contract but the employer fails to certify and pay for such work, the contractor is entitled to payment on the basis of quantum meruit for the actual work done. Even where there was dispute about scope of work performed, the court accepted the evidence of the contractor and the employer's project manager that preliminary mobilisation and earthworks valued at UGX 335,456,300 had been completed. The employer's failure to certify was a breach justifying the quantum meruit award.
Outcome
Judgment entered for plaintiff with monetary award for work performed
Facts
Consolidated Contractors Limited entered into a road upgrading contract with Kampala City Council on 20 May 2005. The contract price was UGX 700,753,240 for upgrading Gentex Drive, Kyambogo Link Road, Factory Drive and Factory Lane in Nakawa Division. Funding was to come 50% from local industrialists and 50% from KCC. The plaintiff procured the required performance guarantee and received possession of the contract works on 27 May 2005. The plaintiff commenced preliminary works including mobilisation, site clearing, earthworks, drainage and some priming, using its own funds without receiving any advance payment. The plaintiff submitted a bill for UGX 335,456,300 for this preliminary work to the project manager who verified and adjusted the claim, but KCC failed to certify or pay. Problems with funding from the industrialists and KCC emerged early in the contract period. The plaintiff brought this suit for recovery of the preliminary works payment.
Issues
- Whether the plaintiff complied with the conditions precedent to the contract?
- Whether the plaintiff executed the contract and if so, how much?
- What remedies?
Orders
- Plaintiff awarded special damages of UGX 335,456,300.
- Interest at 26% per annum on special damages from 18 August 2005 until payment in full.
- General damages of UGX 5,000,000 awarded.
- Interest at 8% per annum on general damages from date of judgment until payment in full.
- Costs of the suit awarded to the plaintiff.
Rules and key headnotes
Cases cited (1)
- Mohammed Saru T/a Moonlight Transporters and Contractors v Jinja Central Division Council (HCCS 223 of 2009)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.