National Housing sued over Shs29b

Friday July 26 2019



A contractor has sued National Housing and Construction Company (NHCC) seeking to recover more than Shs29b as outstanding balance for the construction of 162 housing units in the Namungoona Estate.
In documents filed before the Commercial Division of the High Court, Ambitious Construction Company claims that whereas NHCC does not dispute the amount of $8.05m (about Shs29b) arising from unpaid certificates, interest on delayed payments, idle charges, loss of profit, utility bills and interest, it has neglected to pay despite several reminders .
Acting through Kaggwa and Kaggwa Advocates, Ambitious Construction Company avers that On March 16, 2016 NHCC signed a contract that stated that upon completion of the phase of the contract they would issue the contractor with certificate of completion within 56 days upon receipt of the units.
However, having executed its part of the contract NHCC has failed to pay outstanding amounts arising from the construction.
According to court documents, on February20, 2018 and March 21, 2018, Ambitious Construction Company wrote to the project manager and chief executive officer of NHCC, reminding them of final completion of 50 per cent retention fee given that work had been completed five months earlier but both officials did not respond to the demand.
The letter had outlined the outstanding sum accruing from nonpayment and delayed payment.
Ambitious Construction Company, documents indicate, again wrote to the project manager on July 28, 2018 seeking dialogue on the matter but the same was ignored, which forced the contractor to serve NHCC with an intention to sue on September12, 2018 and October 18, 2018.
However, reacting to the notices, NHCC on October 23, 2018 responded to the matter conceding to the delay to pay and on October 31, 2018 invited Ambitious Construction Company to a meeting in which they agreed on a payment schedule.
NHCC has since paid two instalments but has ignored other agreed upon payment schedules that have since accrued to more than Shs29b.