Wakilii

Consolidated Contractors Ltd v City Council of Kampala (HCT-00-CC-CS 11 of 2008)

High Court · [2013] UGCOMMC 18 · 2013 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for breach of contract and quantum meruit recovery
Decision
Judgment entered for plaintiff with monetary award for work performed

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

  1. Whether the plaintiff complied with the conditions precedent to the contract?
  2. Whether the plaintiff executed the contract and if so, how much?
  3. 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

Contract Law — Breach of Contract — Payment Obligations — Quantum Meruit
Where a contractor has performed part of the contracted work but the employer fails to issue the required payment certificate and make payment, this constitutes a breach of contract entitling the contractor to recover payment on the basis of quantum meruit for the actual work done.
Contract Law — Certification of Works — Employer's Duty to Certify
An employer under a construction contract has a duty to certify whatever work has been done and billed in a timely manner as provided for under the contract. Failure to certify completed work, whether to confirm work done or to record zero work, constitutes an error that may result in liability on the basis of quantum meruit.
Evidence — Burden of Proof — Scope of Work Performed — Corroboration
Where multiple witnesses including the employer's own project manager and city engineer testify that work was performed under a contract, and no alternative quantum is put forward by the employer, the court may accept the contractor's valuation of the work performed even in the absence of formal certification.

Cases cited (1)

  • Mohammed Saru T/a Moonlight Transporters and Contractors v Jinja Central Division Council (HCCS 223 of 2009)

Full judgment

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The original judgment as reported. Read the original PDF before relying on any passage.

Consolidated Contractors Ltd v City Council of Kampala (HCT-00-CC-CS 11 of 2008) [2013] UGCommC 18 (4 February 2013)
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.