Meera Investments Limited has sued FBW (u) Ltd and its directors Nigel J. Tilling and Paul Moores for breach of contract amounting to over $3m.
The firm entered a contract for the extension of Ruparelia Group owned Kabira Country Club, located in Bukoto, Kampala city.
This is according to a suit filed jointly by Meera’s lawyers Ssemambo & Ssemambo Advocates and Magna Advocates, on Monday September 14.
FBW entered into contract with Meera on 6th February 2012 for both Speke Apartments Wampewo and Kabira Country Club extension with the scope of work including design development encompassing architectural, structural engineering, mechanical and electrical engineering, other civil services, design team coordination, construction supervision and incidental services.
In October 2018, the parties mutually agreed to resume the implementation of Kabira’s expansion project.
FBW and its directors undertook to complete full construction drawings before the end of December 2018 with construction scheduled to start in January 2019.
FBW had already received three installments which covered work up to submission of construction drawings package.
However, in contravention of the contract, FBW demanded more money totaling to $75,000 (20%) which they were supposed to receive when construction had commenced.
Meera who urgently needed construction to commence made the payments and FBW to their surprise demanded more money in November 2018.
Meera made another $37,500 payment which was supposed to be the fifth installment, also supposed to be an in-between construction payment, long after the drawings should have been submitted.
Meera requested for the architectural drawings but to their shock, FBW demanded a sixth installment which was supposed to be paid on completion of construction of the shell structure.
On insistence, FBW only handed over PDF format which was neither adjustable, nor usable and they didn’t include the CAD files of the construction drawings.
As a result, Meera hired other professionals to complete the work so that their building could meet the 36 months schedule to completion.
Meera engaged the architectural services of M/S Design 256 Ltd at a cost of $65,000, engineering firm Constulka Services for final construction drawings plus CAD files at $55,000 and a mechanical and electrical engineer James Bakyaawa Ssozi of Chase Consults Ltd to convert PDF drawings to Auto-CAD on A1 and a payment of $16,000 was made.
Meera now wants court to compel FBW plus Tiling and Moores to refund $132,750 being money received to the plaintiff’s use by the defendants, plus special damages of $286,739 arising out of defendants’ breach of contract and general damages inclusive of $2,672,579 as income Kabira will miss because the project will be delayed for six months arising from FBW’s breach of contract.
The defendants have been given two weeks to file their defence by the Commercial Division of the High Court.