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11. By the Public Procurement Act, 2003 (Act 663) as amended by Public Procurement Amendment Act 2016 (Act 914) all public institutions are to establish
11. By the Public Procurement Act, 2003 (Act 663) as amended by Public Procurement Amendment Act 2016 (Act 914) all public institutions are to establish an Entity Tender Committee for the purpose of procurement of works, goods and services. The New Era Construction (NEC) Limited by an award letter dated 22nd January, 2020 was contracted to construct a bypass road from Tek Junction to Ayeduase off KNUST campus to prevent commercial vehicles from passing through the University. The work which has the commencement date as 1st February, 2020 was expected to be complete on 30th April, 2020. NEC has pre financed the works to about 60% completion. By a letter dated the 28th day of January 2020, the University Council has terminated the contract with effect from that date citing illegality of the contract among others as the reason. The letter states that the award of the contract was executed in breach of Act 663 and Act 914 and the University Statutes which sets up the University Entity Tender Committee to advise the University on the award of contracts. The letter sought to rely on the non-compliance of the University Statutes for the award of the contract and that the procedure adopted in awarding the contract to NEC was improper, irregular and against public policy and therefore renders the contract unenforceable and illegal. NEC has contended that the termination constituted a breach of the contract. NEC has therefore sued KNUST in the Commercial Court, Kumasi on 6th February 2022 claiming among other things i. An order of the court compelling the defendants to pay to NEC the sum of money being the cost of works executed and ii. Damages for breach of contract. The Vice Chancellor upon being served with the writ has rushed into your office as the newly recruited Director of Projects for KNUST. Can NEC be successful in his claim, advise the Vice Chancellor
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