Sunday, 01 August 2021 19:02

Breach of Contract: Court orders Ogun Govt to pay construction firm N608m

An Ogun State High sitting in Abeokuta has ordered the state government to pay a construction firm, Contemporary Group Ltd, the sum of N608,867,925 being the outstanding balance for the construction of two state-of-art model secondary schools and hostels in the state.

Contemporary Group Ltd, through the law firm of Charles Mekwunye and Co., had dragged the state government before the court in 2020 for breach of the terms of the contract for the construction of the two model secondary schools with hostels located at Ewekoro and Ago-Iwoye areas of the state.

The firm averred that by two contracts dated May 22, 2012, the state government engaged its services for the construction of the two schools at the cost of N750million each and an additional N50.8million cost for the two attached hostels.

After the state government’s initial payment of N525million and a letter for 65% irrevocable standing payment order which amounted to N867.8million, the firm claimed that it went to work and completed the construction for the two schools in 2015 with a work certification letter issued by the State Bureau for Public Monitoring and Concession.

According to the firm, the two schools and hostels were commissioned with fanfare and have since being put to use.

After making an additional payment of about N568m between 2016-2018, the firm claimed that all its subsequent requests for payment of the outstanding balance of N608million inclusive of interest have been rebuffed to date by the state government.

In a judgment delivered on the matter in March 2021, by Justice O.J Bamgbose, the court found the state government liable for breach of the contract terms for the construction of the two schools which are still being used by students in various locations.

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