China Jiangxi Corporation for International Economic and Technical Corporation Zambia Limited has dragged Zambia National Farmers Union (ZNFU) to court for failing to settle K342,338 for the construction of an office block and conference facility.
China Jiangxi, which has sued Jervis Zimba in his capacity as ZNFU president, is also demanding payment of K350,052, retention payable after handing over the project.
In a statement of claim filed in the Lusaka High Court, it stated that on July 21, 2012, the parties entered into a construction contract where the company was to construct ZNFU’s two storey office block and conference facilities on Tiyende Pamodzi Road at the Lusaka Show ground.
China Jiangxi stated that it was a term of contract that the contract price would be K14,002,109,999.54 and the contract period would be 53 calender weeks.
“It was a further term of contract that the period of honouring payment certificates by the employer shall be a maximum of 21 days from the day that the certificate is approved by the project manager and delivered to the employer and that delays in honouring payment certificates beyond 21 days shall attract interest at the rates established by the Bank of Zambia,” read the statement of claim.
And China Jiangxi stated that in due performance of the contract, it handed over the facility to ZNFU in May, 2015 and a certificate of completion was duly issued.
It disclosed that in breach of the terms of the contract, ZNFU had neglected to settle the retention fee amounting to K350,052.75 and the outstanding sum of K342,338.68 for the main construction work, adding that as a result it had suffered loss and damage
“On January 5, 2015, upon execution of the certificate of practical completion by the parties, a sum of K350,052 which was the retention sum required to be paid one year after handling over the project by the plaintiff, should have been paid by the defendant to the plaintiff, but this has not been paid despite the office block having been handed over to the defendant in May, 2015,” read the statement of claim.
“Despite taking possession of all the constructed office block and conference facility, the defendants have not also settled the final outstanding sum of K342,338.68 which should have been paid 28 days after issuance of certificate of completion despite repeated pleas to do so.
China Jiangxi now claims settlement of K350,052.75, the retention payable after handling over of a project, settlement of the sum of K342,338.68 being outstanding balance due which should have been settled 28 days after issuance of certificate of completion, damages, interest on all sums found due and costs.