A local company whose KSh1.4 billion contract was cancelled by Tatu City says the decision was erroneous and without due process.
The company says that since due process was not followed, it then follows that the Tatu City decision is an annullity.
Ongata Works through lawyer Joram Mwenda told the high court that the company’s reputation “may suffer irreparably” if Tatu City is allowed to kick it out of the site.
Mwenda painted a picture of how haphazard Tatu City has dealt with the contractor…how it changed the scope of the works assigned, barely a week after the contract was entered into.
Mwenda told justice Joseph ONguto the contract provides for a Dispute Adjudication Board(DAB), appointed by both parties and if the board fails to resolve the matter, it can then proceed for arbitration.
According to the lawyer, the contract is still in force, after Tatu City granted them an extension that ends on April 3 2017, a thing Tatu City lawyer says is not true as it had already cancelled the initial contract.
Mwenda said the works done by the contractor and the materials were yet to be quantified and the company will be greatly prejudiced if the threat is not stopped.
“The true value of the works can only be determined if the site is preserved,” the lawyer submitted.
The KSh1.4 billion contract was cancelled on December 13 2017 , forcing Ongata to move to court and obtain an order barring Tatu from continuing with construction at the site and thus appointing a new contractor till the dispute is heard and resolved.
Scope of work
According to the lawyer, Tatu City cancelled the contract on claims that the company had failed to perform the works as agreed but in essence, it had varied the scope.
He accused Tatu City of varying the scope of work and stopping the progression at various stages ” haphazardly.”
“But they have failed to exhibit any documents citing Ongata for any failure,” he added.
On its part, Tatu City through lawyer Issa Mansur told the trial the court to dismiss the case stating that there was no contract to be preserved. He said the agreement provided for a clause in which the employer could renege on the contract at any stage.
He said since the cancellation in December, the contractor had failed to take steps to refer the matter to arbitration.
The contractor and the developer differed on December 13 2017 , after latter ordered Ongata Works out of the site. Tatu City gave Ongata Works a 14-day notice to vacate the site.
The court will give its ruling on January 31 2018.