The University of T&T (UTT) has been ordered to pay a company over $350,000 it withheld from a construction contract due to alleged faulty work.
Delivering a written judgement yesterday, Justice Frank Seepersad upheld the lawsuit of Pre Camp TT Limited against the state-funded tertiary institution, as he ruled that it (UTT) should have raised the issues with the faulty work during the period for doing so under the contract.
Seepersad said, “It may well be that aspects of the Claimant’s work were defective but the Defendant failed to undertake the necessary verification processes within the contractually stipulated time period as it relates to assertions of defective work.”
According to the evidence in the case, in September 2007, UTT entered into a $12.6 million contract with the company to construct a prefabricated building at its Chaguanas campus to house classrooms.
Almost four years later, the parties entered into a supplemental agreement for additional work at an additional cost of $2.8 million.
Under the terms of the contracts, UTT was allowed to retain five per cent of the construction costs until the work was completed to its satisfaction.
The company claimed that after it completed the project and remedial works in May 2013, it requested that UTT release the retained sums.
While UTT allowed the release of the company’s performance bond for the project, which was held by a financial institution, it refused to pay the retention sums, as it claimed that it found numerous faults with the work which had to be repaired by new contractors.
The company sued UTT for its decision and UTT countersued the company in a bid to keep the money.
Based on UTT’s defence to the lawsuit, Justice Seepersad ordered it to pay the company $426,413.33 in January 2019, as the lawsuit continued over the remainder.
In his judgement, Seepersad stated that it was unfortunate and unacceptable that UTT did not deal with the quality assessments in a timely manner.
“The Defendant, especially, since it is dependent on state funding, should have operated with a heightened degree of care and caution so as to ensure that optimal value had been received,” he said.
“There can be no room for complacency when state funds are involved. Now more than ever all organisations and entities which depend upon state funding must ensure that contractors, providers, and all suppliers strictly adhere to all contractual obligations, as citizens deserve to get maximum value for their funds when they are expended.”
The company was represented by Leisa Kisto and Jennifer Rogers, while Stephen Singh and Kendell Alexander represented UTT.
