KCCA Headquarters The High Court has ordered Kampala Capital City Authority (KCCA) to pay Bisons Consult International Limited Shs1.302 billion in special damages after finding that the authority breached its contractual obligations in a drainage channel construction project.Justice Stephen Mubiru delivered the ruling on September 21, 2026, following a dispute arising from a 2016 contract worth Shs4.293 billion for design update and construction of eight drainage channels.The project covered St. Dennis, Nalweyiso, Kabaluka, Nakinyuguzi, Nabunya, Kimera, Luwombo and Nyanama channels and was scheduled for completion within 12 months from June 20, 2016.Bisons Consult argued that KCCA withdrew Luwombo and Nyanama channels shortly after work began and replaced them with other channels.The company said project had been overvalued by more than 34.5 percent, leaving agreed scope of work insufficient to cover advance payment it had received. It claimed KCCA promised to provide additional works to account for difference but failed to do so.The contractor further accused KCCA of delaying design approvals, failing to provide survey data and control points, denying timely access to construction sites, introducing costly variations and refusing to adequately compensate for delays caused by adverse weather and unforeseen physical obstacles.The contract was eventually terminated on grounds including slow progress, failure to update work schedules, inadequate technical personnel and poor accountability for advance payment.Justice Mubiru found that KCCA had failed to approve designs and technical proposals within reasonable time. He cited dispute over Kabaluka Channel gorge, which remained unresolved for about seven months despite several proposals by contractor.“In summary, the defendant consistently failed to approve designs and technical solutions within a reasonable timeframe,” the judge said.He added that delays undermined KCCA’s attempt to hold contractor solely responsible for slow progress, noting that authority’s own project manager’s representative had recommended extensions of 37 and 26 working days for separate requests.The court also found that KCCA had failed to secure access to project sites, despite contractual provisions placing that responsibility on authority.“In conclusion, the defendant is blameworthy. The express contractual obligation under GCC 21 and 22, reinforced by Special Conditions, placed primary responsibility for securing site access squarely on defendant,” Justice Mubiru said.“The defendant’s reactive approach, treating site acquisition as a concurrent activity rather than a precondition to performance, constituted breach of its duty to provide a clean site,” he ruled.According to judgment, KCCA’s failure to secure rights of way also led to withdrawal and replacement of Luwombo and Nyanama channels, amounting to breach of contract.The court further held that authority had made fraudulent misrepresentation in relation to inflated project cost.“The fact that inflation became apparent during execution does not necessarily establish that plaintiff had pre-contractual means of discovery,” Justice Mubiru said. “Moreover, if fraud is established, this defence is inapplicable.”He added: “Victims of fraud are not required to exhaust all means of investigation to be entitled to relief. A person who has been defrauded is not obligated to investigate conduct of another unless there is reason for suspicion.”The court also found that KCCA breached its obligation to prepare and issue termination account under GCC 60. Justice Mubiru said omission could have prejudiced Bisons Consult’s ability to establish and recover amounts owed to it.The Shs1.302 billion award includes Shs348.4 million for cost of procuring and maintaining advance payment and performance guarantees; Shs220.49 million for additional costs resulting from re-scoping of works; Shs187.44 million for higher concrete mix required by KCCA; Shs230.93 million in delay-related costs; Shs136.95 million for unmeasured work; and Shs178.19 million as refund of liquidated damages deducted from contractor.The award will attract interest at 20% per annum from September 18, 2020, until payment in full. KCCA was also ordered to pay costs of the suit.The post Court Orders KCCA to Pay Shs1.3bn to Contractor for Breach of Drainage Contract appeared first on Business Focus.