[2018]DLHC6273 • March 15, 2018 • High Court
NYAGSI ENGINEERING LTD vs. GHANA HIGHWAY AUTHORITY
The Plaintiff, Nyagsi Engineering Ltd, tendered and won a contract in 2008 to upgrade the Yendi-Gushiegu Road in Northern Ghana, with approval from the Central Tender Review Board. The Defendant, Ghana Highway Authority, required a performance security before signing the contract. The Plaintiff secured a performance bond and prepared to execute the contract but received a suspension letter in April 2009, halting commencement. The Plaintiff alleged breach of contract and sought damages, claiming losses from the suspension and re-award of the contract to another company.
read more1. Construction Contracts: Offer and Acceptance, Intention to be legally bound 2. Special Damages to be particularized and proven 3. Award of General Damages(factors to take into consideration) 4. Interest rates and how calculated The Plaintiff’s claim against the Defendant is for general and punitive damages for breach of contract. It was the Plaintiff’s case that in June 2007 it tendered for and sometime in 2008 won a competitive bidding contract to undertake the upgrading of the 54.2 kilometres Yendi-Gushiegu Road in the Northern Region of Ghana. It averred that the Central Tender Review Board of the Ministry of Finance & Economic Planning gave concurrent approval for the award of the contract to it on 23rd December 2008. This was followed by a letter dated 5th January 2009 confirming the award of the contract at a price of GH¢35,994,052.54. It was the Plaintiff’s case that the Defendant had demanded the provision of a performance security and had indicated that...