syscon builders ltd vs the psn of agriculture fs 2 others 2004 tzhccomd 35 1 october 2004

syscon builders ltd vs the psn of agriculture fs 2 others 2004 tzhccomd 35 1 october 2004

The court held that site clearance and tree removal with girth greater than 500 mm were provided for as separate items under the contract, and the works were executed with the approval of the site and resident engineers, who acted as agents of the defendants. The plaintiff is entitled to payment at the contractual rates for these works. The claim for interest on delayed payment for IPC No. 4 was denied as the delay was due to lack of prior approval, and interest is only payable from the date of actual approval. The adjudicator’s findings are not binding on the court.

Citation
syscon builders ltd vs the psn of agriculture fs 2 others 2004 tzhccomd 35 1 october 2004
Parties
Plaintiff: SYSCON BUILDERS LTD; 1st Defendant: THE PERMANENT SECRETARY MINISTRY OF AGRICULTURE AND FOOD SECURITY; 2nd Defendant: GIBB (EASTERN AFRICA) LTD; 3rd Defendant: THE HON. ATTORNEY GENERAL
Court
TZHCCOMD
Jurisdiction
Tanzania
Judgment Date
1 October 2004
Procedural Posture
Commercial Case / Judgment
Outcome
Judgment for the Plaintiff in part
Legal Topics
Contract Interpretation, Variation of Contract, Quantum Meruit, Interest on Delayed Payments, Authority of Agents, Adjudication in Construction Contracts
Source Language
English
Contract Law Construction Law Civil Procedure Contract Interpretation Variation of Contract Quantum Meruit Interest on Delayed Payments Authority of Agents +1 more

Case Brief

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Parties

SYSCON BUILDERS LTD

Plaintiff

THE PERMANENT SECRETARY MINISTRY OF AGRICULTURE AND FOOD SECURITY

1st Defendant

GIBB (EASTERN AFRICA) LTD

2nd Defendant

THE HON. ATTORNEY GENERAL

3rd Defendant

Procedural Posture

Commercial Case / Judgment

Legal Issues

  1. 1 Whether site clearance works were provided for as separate items or included in the main contract estimates
  2. 2 Whether cutting, stumping and disposal of trees with girth greater than 500 mm was a separate item or included in the main contract
  3. 3 Whether the works claimed were site clearance or top soil stripping

Ratio Decidendi

The court held that site clearance and tree removal with girth greater than 500 mm were provided for as separate items under the contract, and the works were executed with the approval of the site and resident engineers, who acted as agents of the defendants. The plaintiff is entitled to payment at the contractual rates for these works. The claim for interest on delayed payment for IPC No. 4 was denied as the delay was due to lack of prior approval, and interest is only payable from the date of actual approval. The adjudicator’s findings are not binding on the court.

Court Disposition

Judgment for the Plaintiff in part

Orders

  • Plaintiff awarded TZS 88,343,245.30 as principal sum
  • Interest at 15% per annum on principal sum from June 2002 to date of judgment