The High Court’s Commercial Division has ordered businessman Patrick Bitature to pay Finicon (U) Limited more than Shs1.9 billion, including VAT, for unpaid architectural and engineering consultancy services provided for two high-profile construction projects in Kololo that never took off.
In a judgment delivered by Justice Stephen Mubiru, the court found that Finicon had substantially fulfilled its contractual obligations under agreements signed in 2012, while Bitature failed to clear the outstanding fees.
The court awarded Finicon US$256,136.17 (about Shs922 million) exclusive of VAT, plus 9% annual interest from May 20, 2014, until payment in full, and ordered Bitature to bear the costs of the suit. With VAT included, the amount rises to about Shs1.9 billion before accumulated interest.
Dispute over two Kololo developments
The case stemmed from two consultancy contracts signed in 2012.
The first, executed on July 6, covered professional consultancy services for a planned luxury boutique hotel on Summit View Road atop Kololo Hill, a project valued at between US$5 million and US$6 million.
A second contract, signed on August 24, involved the remodelling of Bitature’s residence on Malcolm X Road in Kololo.
Finicon told court that it undertook extensive preparatory work on both projects, including feasibility studies, surveying, architectural designs, production drawings, project summaries, tendering, environmental approvals from the National Environment Management Authority (NEMA) and technical revisions required by the Kampala Capital City Authority (KCCA).
The consultancy firm argued that it completed about 76% of the contracted work before the projects stalled.
Court dismisses settlement claim
Bitature maintained that the consultancy fees could only be determined after the projects reached later stages, including the preparation of bills of quantities, and argued that the contracts became unenforceable because construction costs were never established.
He also claimed that the US$23,538 he had previously paid constituted a full and final settlement.
Justice Mubiru rejected that argument, saying Bitature failed to demonstrate the existence of any clear agreement extinguishing Finicon’s remaining claim.
“The absence of a clear and unambiguous agreement to that effect supports this conclusion,” the judge ruled.
The court further held that Finicon had provided sufficient evidence showing it had carried out the contracted services, while Bitature failed to prove any additional payments beyond those already acknowledged.
Long-running dispute ends
The judgment brings to a close a dispute that has stretched for more than a decade, with interest continuing to accrue from May 2014 until the outstanding amount is fully paid.
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