Kenya Pipeline wants Sh300mn deal cancelled due to contractor to delays

What you need to know:

  • The State corporation also wants Empo Electrical & Mechanical Engineering Company Ltd, stopped from working, arguing that the one year contract between them had already expired.
  • KPC said that on March 10, this year the firm sought extension of time as had been provided for in the contract, to enable the completion of the project but upon assessing, it established that the said request did not disclose any justifiable or adequate reasons for seeking extension of time.

The Kenya Pipeline Company (KPC) has defended itself against allegations that it had declined to extend time to enable a contracted firm complete a Sh300 million project in Eldoret.

The State corporation also wants Empo Electrical & Mechanical Engineering Company Ltd, stopped from working, arguing that the one year contract between them had already expired.

Empo Electrical & Mechanical Engineering Company Ltd, wants the State corporation stopped from terminating their contract or entering into a new contract with another firm to complete the said work, arguing that its request was valid and protected by the agreement.

However, KPC said they had entered into a contact with Empo Electrical in February last year, and the firm undertook to implement the project within a year.

“According to the contract, Empo Electrical & Mechanical Engineering Company Ltd agreed that it would carry out and discharge its obligations within a 12 months period, starting from March 24, 2014 to March 23, 2015,” explained KPC.

JUSTIFIABLE REASONS

KPC said that on March 10, this year the firm sought extension of time as had been provided for in the contract, to enable the completion of the project but upon assessing, it established that the said request did not disclose any justifiable or adequate reasons for seeking extension of time.

“It did not demonstrate how the issues raised affected the implementation of the project on the basis of the contract programme,” KPC responded.

In seeking extension of time, the firm argued that there was substantial change of loading requirements which necessitated the manufacture of other materials, which could only be delivered to the site on the first week of May, 2015.

Other challenges were that some of the materials were expected to be ready by end of April, 2015. The extreme weather experienced in the month of September, 2014 also led to a loss of time.

Similarly, hauling of murram was highly affected by the wrangles between two counties since the approved quarry for the murram was in a different county, Elgeyo Marakwet County whereas the works were in the Uasin Gishu County.

“The request for extension of time was exercised by us invoking clause 44.1 of the conditions of contract which in any event provides for the extension on among other grounds the nature of additional work, exceptional adverse climatic conditions among other special circumstances,” said Empo Electrical.