Construction firm sues RTSA over K500,000

Mart Speed Construction Limited has sued the Road Transport and Safety Agency (RTSA) in the Lusaka High Court for failure to pay over K500,000 for the construction of a motor vehicle concrete slab at Silverest, Chongwe.

The company is further seeking an order of payment and reimbursement of the costs and losses incurred after RTSA terminated the agreement for the construction of a Motor Vehicle Inspection Centre in Petauke in the sum of K713,400.

In a statement of claim filed in the Lusaka High Court, January 30, Mart Speed stated that in May 2016, it bided for two separate contracts for the construction of Motor Vehicle Inspection Centre in Petauke and Chipata respectively, which bid was successfully awarded to it.

It stated that in May 2017, it entered into an agreement with RTSA for the construction of 30 X 30 motor vehicle concrete slab in Silverest, Chongwe for the amount of K337,517.

Mart Speed stated that upon the issuance of the purchase order in June 2017, RTSA unilaterally altered the terms of the construction by changing the specifications of the slab from 30 X 30 metres to 40 metres X 30 metres.

It stated that despite the alteration, it proceeded to carry out and complete all the works including the variations under the project at an additional cost of K201,047 in July 2017, which was successfully completed and handled over to RTSA.

Mart Speed disclosed that RTSA had to date not paid it for all the works done and was still indebted to it in the total sum of K538,564.

It stated that further to the previously mentioned, it also entered into an agreement with RTSA in May 2016 for the construction of a Motor Vehicle Inspection Centre in Petauke.

Mart Speed stated that in anticipation of the said works under the project, it incurred expenses amounting to K713,400.

It disclosed that despite both agreements being duly executed, RTSA, after a prolonged period, advised the company that both contracts for the construction of Motor Vehicle Inspection Centres in Chipata and Petauke would be deferred or put off.

Mart Speed further disclosed that in a meeting held in September last year, RTSA proceeded to not only defer the said agreements but informed the company that the said agreements were terminated due to unavailability of funds.

“Thereafter, RTSA advised Mart Speed that any concerns that it wished to raise after the termination should be submitted in writing and further that on the price validity, any significant material cost fluctuation over the period from tender to the proposed start dates would be accordingly considered and reimbursed,” read the statement of claim.

Mart Speed stated it proceeded to raise its concerns in writing and requested payment and reimbursement of the costs and losses incurred as a result of termination of the contracts totaling K713,400, which RTSA had failed to pay.

“Despite several demands and reminders, RTSA has willfully neglected and refused to honour its legal obligations under the said agreements. As a result, Speed Mart has suffered grave loss, damages and inconveniences,” read the statement of claim further.

The company is now seeking for an order of payment of the outstanding balance for the construction of a 40 X 30 metres concrete slab at Silverest in the sum of K538,564, as well as, an order of payment and reimbursement of the costs and losses incurred under the agreement for the construction of a Motor Vehicle Inspection Center in Petauke, in the sum of K713,400.

It’s further claiming damages for loss of use of funds, damages for breach of contract, damages for loss of chance and opportunity, interest, costs and any other relief.

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