Construction Firm Drags UNRA to court over Breach of Contract, Demands Shs20bn

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Construction Firm Drags UNRA to court over Breach of Contract, Demands Shs20bn


By Serestino Tusingwire


A Road Construction Company has dragged Uganda National Roads Authority (UNRA) to the Commercial Court accusing it of illegally terminating its contract.

M4 investments Ltd allegedly signed a contract with UNRA to maintain 48 selected roads in Amudat district but the contract was later terminated without any notice.

They have now taken UNRA to court and they want over Shs20bn as compensation for the illegal termination of the contract.

M4 investments Ltd says in 2015, it was contracted by UNRA to do road repairs but before starting the works, UNRA terminated the contract on grounds that the company delayed to commence its work as the PPDA had to carry out underground investigations into the bidding process.

However, upon being cleared as the highest and best bidder, UNRA did not allow the company to go on with the road works saying the time within which it had to perform its duties had expired.

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