Buxton housing project in limbo after termination of builder’s contact

The Sh6 billion Buxton housing project in Mombasa is in limbo after the builder’s contract was terminated.

Philmark System Services Limited, which is constructing the modern housing units, has sued Buxton Point Developers Ltd for illegally terminating its contract.

Through its advocate Paul Magolo, the firm says the termination of contract did not follow due process and the rules of natural justice.

“Despite the termination of the contract, the firm has not been paid for the work done so far and materials ordered and delivered on-site,” Magolo said.

Philmark director Philemon Okello, said the company had suffered a loss of more than Sh200 million following the termination of the contract.

“I was harassed when I visited the premises to collect materials including computers and laptops,” he said in court documents.

In a sworn-affidavit, Okello claims that the defendants intended to demolish offices and that the firm’s equipment and machines still on the site were being vandalised and misused.

He wants cothe urt to suspend the termination of its contract and restrain any company from completing the work until its complaints are determined.

“Since we began construction, no valuation certificate has been raised to effect payments pursuant to work done, and instead, advance payment was usually made to us on request,” he said.

Additionally, he also wants the court to declare the termination of the contract illegal. He wants his firm paid for work done and for materials delivered and Sh200 million in damages for loss of profit.

Mombasa High Court Judge Olga Sewe has certified the case as urgent and ordered court documents to be supplied to all parties before the matter is set for hearing.

According to court documents, Philmark has completed 70 units and 40 per percent phase one of the projects involving districts A and B which has 90 units.

Roton Construction Ltd had won the tender for the project but subcontracted the work to Philmark to complete District A and B for Sh510 million.

Philmark received a letter terminating its contract on February 28, prompting it to move to court.

The project started last May but construction was delayed due to a court case filed by tenants of the former Buxton Estate.