DUYAS COMPANY LTD. vs. P & W GHANEM LTD.

The plaintiff is a general construction company based in Kumasi, whilst the defendant is engaged in civil engineering and general construction with branches in many parts of the country including Kumasi. In August, 2002 the Government of Ghana through the Ministry of Roads and Transport and the Ghana Highway Authority, awarded a contract under its periodic road maintenance programme to the defendant for regravelling of the 50.4 kilometre Ejura-Nkoranza road. By an award letter dated 4th April, 2003, the defendant engaged the plaintiff as a sub-contractor to construct drainage structures at its project site. The award letter, tendered in evidence as exhibit ‘A’ reads in part as follows: “We are glad to inform you that you have been awarded a sub-contract for the construction of drainage structures on our Ejura-Nkoranza Project. We are offering you all the moment work to the tune of approximately Five Hundred Million Cedis (¢ 500,000,000.00) and you could do more when it is succes...