Contractor sued over breach of street lights contract

Monday January 6 2020

The company, according to court documents, was

The company, according to court documents, was awarded a contract to relocate electricity poles, supply and install street lights and offer rehabilitation works on Katwe (1.1km) and Alex Sebowa roads in Masaka. 

By BETTY NDAGIRE

A contractor has been sued by a civil engineering company over breach of a sub-contract for installing street lights on two roads in Masaka Municipality.

Kasolya Limited, a sub-contractor, accuses Star Group Limited, according to documents filed before the Commercial Division of the High Court, of awarding the same contract to another company yet it had been contracted to do the same work.

Kasolya Limited, documents show, was awarded a contract to relocate electricity poles, supply and install street lights and offer rehabilitation works on Katwe (1.1km) and Alex Sebowa roads in Masaka.

However, the same was awarded to another company thus causing financial loss to Kasolya Limited.

Court documents show that on July 19, 2018, Star Group entered and executed a sub-contract with Kasolya to relocate electricity poles, supply and install street lights on two roads in Masaka Municipality at Shs235m.

The contract required works to be completed within four weeks from July 19, 2018, which, given the urgency, forced Kasolya to mobilise and purchase necessary materials, equipment worth Shs143.5m.

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The materials were immediately transported to the site but Kasolya was shocked after the company was told that the contract had been given to another contractor.

The action, Kasolya claims, not only caused them financial loss but business inconvenience thus seeking damages of Shs143m being expenses they incurred, general damages and interest to the suit arising from breach of contract.

Seeking court declaration
Kasolya is also seeking a declaration that Star Group breached the sub contract, order damages, interest at of 30 per cent, cost of the suit and others as court may deem fit.

The court registrar has given Star Group 15 days within which it must file a written defence failure of which a judgement will be entered in absentia.

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