UNRA ordered to go for mediation in a $321,879 dispute with contractor

Uganda National Roads Authority could do with the glib tongue of a hostage negotiator and the slippery body of fish to get away with paying $321,879 (about Shs1 billion) to a contractor.

Phoenix Engineering and Research Limited sued UNRA for failure to pay for work on the Luweero-Kafu road between February 2006 and September 2010 and the Commercial Division of the High Court has preferred that the two parties first negotiate an out-of-court settlement.

It is before mediator Harriet Grace Magala that UNRA hopes it can exude the best possible negotiation skills to slip through the nest cast by Phoenix.

Phoenix Engineering and Research Ltd was contracted by the government through the Ministry of Works, Housing and Communication to provide consultancy services for the design, tender assistance and construction supervision for the rehabilitation/resealing of the Luweero-Kafu road.

In 2016, the contractor dragged UNRA to court for breach of contract and nonpayment of $321,879 for work done on the said road. Phoenix, through its lawyers Shonubi Musoke and Co Advocates, alleges that when UNRA came into force on December 1, 2006, it took over the obligations under the contract, including the duty to pay for the construction agreed upon in the contract.

The contract provided that the employer (in this case UNRA) was to pay within 30 days of receipt of the invoices and 45 days in case of final payment for services delivered.

Phoenix further contends that UNRA, despite acknowledging receipt of the invoices, has to to-date deliberately refused to pay up yet its work has improved access to the rural economically productive areas of Uganda.

The contractor also says that demands and notices of intention to sue were communicated to the defendant, all of which were ignored.

UNRA, in its defence, contends that they were never privy to the contract, which they claim was between Phoenix Engineering and Research Ltd, and the Ministry of Works, Housing and Communication.

The roads authority claims that the letter referred to by Phoenix only gave them a supervisory role and not any other obligations under the contract.

They insist no contract of novation was concluded between the three parties and hence the allegations levied against it are unfounded.

They further contend that if there were any monies paid to Phoenix by them under the contract, it was paid in error and they retain the right to a refund.

The Authority also contend that the contract was intended for 18 calendar months and was never extended past March 2009 and that the letter dated October 25, 2010, was retrospective as the contract under which Phoenix is claiming had already expired.

The parties are still in mediation with the most recent session on February 1 before Magala.