Ex-AG: Junior Sammy vindicated by Privy Council ruling

LOCAL contractor Junior Sammy intends to sponsor a conference on standard form contracts and FIDIC contracts for the benefit of the construction industry and government agencies.

His decision to sponsor such a conference comes as a result of a ruling by the Privy Council dismissing an appeal by the Estate Management Business Development Company Ltd (EMBD) over unpaid fees to Sammy’s company Junior Sammy Contractors.

Sammy’s attorney Ramesh Lawerence Maharaj, SC, said the purpose of the conference was for contractors and employers to know their rights and obligations under these particular types of contracts used in TT and the Commonwealth.

Maharaj said the Privy Council’s judgment on Tuesday was “important” as it not only vindicated Sammy and his company but should also coerce Government and state-owned entities, such as the EMBD, to put administrative infrastructure in place to ensure that claims made by contractors are properly assessed to avoid errors in defending contractors’ claims for payments.

The legal dispute between the EMBD and Sammy concerned a contract for the Caroni Savannah Residential Development.

The contract was first awarded to another company in 2010 but was terminated after it (the company) failed to perform or complete the work.

Junior Sammy Contractors submitted a $231 million tender for the project and was awarded the contract to complete the development.

It sued EMBD after only seven of the 13 interim payment certificates (IPCs) were paid which were approved by the independent engineering company appointed by EMBD to act as its agent.

The EMBD tried to allege fraud and abatement. The Privy Council dismissed this because of a lack of evidence.

Maharaj urged all contractors to read the ruling. He also urged state companies to do the same since “it would save taxpayers monies by not having to pay legal costs” in claims that could not be defended.

“I am sure that you would agree with me that those expenses can be saved and used for the benefit of the people.”

He also urged the Government and its entities to take steps to ensure there are no delays in paying contracts since “interest accrues” on legitimate debts owed.