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Tuesday 20 February 2018
Local

KallCo sues SporTT for $25m

Piarco-based contractor KallCo has filed a $25.8 million claim against SporTT seeking settlement of a contract for upgrade work at the Eddie Hart Recreational Ground in Tacarigua.

KallCo’s contract was suspended in November 2013, by SporTT’s project manager some six months after work began at the site.

A stop-work order was issued when it was discovered that the project did not have the requisite approvals from the relevant agencies. KallCo’s contract with SporTT was valued at $187 million, according to the contractor’s claim form filed in May 2017, by its attorneys Douglas Mendes, SC, Devesh Maharaj, and Kandace Bharath.

Hearing of the million-dollar claim came up before Justice Ricky Rahim at the Hall of Justice in Port of Spain on Tuesday and has been adjourned to March 5.

KallCo says it has suffered “grave financial hardship” from its numerous attempts with SporTT to settle the matter.

The contractor has also said in its lawsuit that it would appear that SporTT “was intent on continuing the delay of the settlement.”

According to KallCo’s claim, it was told by a conditional letter of acceptance, dated May 28, 2013, that its tender for the project was accepted. KallCo began with execution work, but on November 22, 2013, they were ordered by the project engineer to suspend all work. The contractor advised SporTT of clause 8.9 of the contract relating to any cost incurred as a result of the suspension.

By April 2014, KallCo, in keeping with the contract, requested permission to recommence work and by June 3, 2014, gave notice of termination of the contract under clause 16.2 of the contract which entitled it to terminate the contract if a lengthy suspension affected the whole of the work.

In July, KallCo’s attorneys requested a meeting to enter discussions regarding the losses incurred by the contractor arising out of the termination of the contract.

Negotiations began between the two by March 2015, and in August a quantity surveyor was selected. By September 3, 2015, the contractor wrote to SporTT advising of their acceptance of the sum of $25.8 million which was valued by the SporTT’s quantity surveyor.

No payment was made and in January 2016, SporTT’s attorneys wrote to KallCo’s attorneys asking for further discussions to be held.

KallCo countered in November, 2016, advising of their intention to invoke the arbitration clause of the contract. The contractor said despite the quantification of its claim by the consultant quantity surveyor appointed by SporTT, the company has refused to pay. The project was touted as a sporting hub to accommodate multi-purpose sporting surfaces and amenities.

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