Contractor seeks $21m for work on Point Fortin hospital

A High Court judge has started hearing evidence in a breach of contract claim filed by a Penal construction firm against Austrian company VAMED Engineering GMBH.

Justice Marissa Robertson began hearing evidence in V&S General Contractors Ltd’s $21 million claim against VAMED.

Testifying on January 21 were V&S representatives Vinod Jagmohan and Richard Lakhan.

The dispute arises from a subcontract related to construction projects at the new Point Fortin Hospital.

V&S General Contractors Ltd is seeking $21,211,407.12 plus VAT as well as damages for breach of contract, loss of profits, demobilisation costs and material losses because of the alleged abrupt termination of the subcontract.

VAMED was hired by Udecott to design, build, and equip the new Point Fortin Hospital in 2014 and a further contract for a roundabout road in February 2019. The contracts followed the FIDIC Red Book, the firm contended in its lawsuit.

The Penal-based firm said in February 2019, it entered into a subcontract with VAMED for the construction of the roundabout road and relocation of a temporary car park and guard booth at the hospital, as well as additional contracts to treat unforeseen soft areas and the construction of a sixth catch pit.

In its claim, V&S has asked for declarations that FIDIC Yellow Book terms referenced in the subcontract were mistakenly included and are inapplicable. The firm asserts that the delays, termination, and non-payment constitute significant contractual breaches, entitling it to relief.

The FIDIC Yellow Book provides the conditions of a contract for construction work where the design is carried out by the contractor, the FIDIC website says. There are five main types of FIDIC contracts: Red Book (construction), Yellow Book (plant and design-build), Silver Book (EPC/turnkey), Green Book (short form), and Pink Book (consulting services).

In its lawsuit, V&S contends VAMED owes it for additional works required to treat unforeseen soft areas encountered during construction.

It also contends that VAMED wrongfully terminated the subcontract on July 30, 2020, preventing the completion of the work.

Senior Counsel Ramesh Lawrence Maharaj, SC, Vijaya Maharaj, Michael Rooplal, Saira Lakhan and Shastine Motilal represent V&S.

Senior Counsel Justin Phelps. Chase Pegus, Nalini Jagnarine and Vahni Seunath represent VAMED.