ENVIRONMENTAL DEVELOPMENT GROUP LIMITED vs. PROVIDENT INSURANCE CO. LTD , ATTORNEY GENERAL AND GHANA EDUCATION TRUST FUND

The plaintiff, Environmental Development Group Limited, contracted to build two hostels at Tamale Polytechnic for the 3rd defendant, Ghana Education Trust Fund (GETFund). The contract, dated 26 June 2003, fixed the contract sum and an 18-month completion period with provisions for extensions due to delays beyond the contractor's control. The plaintiff failed to complete on time and requested a six-month extension, which was effectively rejected by the Contract Administrator appointed by the 3rd defendant. The 3rd defendant terminated the contract on 8 April 2005, citing the plaintiff's failure to diligently execute the works. The plaintiff sued, seeking declarations that the termination was unlawful, damages, and an injunction restraining the 1st defendant (Provident Insurance Co. Ltd) from paying on guarantee bonds issued for the project.

PWAMANG, JSC:- My Lords, this case comes before us as the final appellate court of the Republic. The case stems from an agreement made on 26th June, 2003 by which the plaintiff/respondent/respondent (the plaintiff) undertook to build two hostels at Tamale Polytechnic for the 3rd defendant/appellant/appellant (3rd defendant). The plaintiff is a building contractor and the 3rd defendant is an agency of the Government of Ghana in charge of providing facilities for educational institutions among other functions. The agreement was comprehensive and spelt out the rights, duties and obligations of all the parties and stated what should happen in the event of, practically, all the known contingencies in construction projects. The agreement provided for a dispute resolution mechanism for industry experts to arbitrate any dispute that may arise. Despite all this, the parties ended up in court and the case has taken fifteen years to be brought to closure. The facts of the case are largely doc...